- Alcoa Transitional Approvals
Framework implemented to protect local jobs and the environment
- Strict environmental controls placed
over Alcoa's mining operations as it transitions to contemporary
approvals
- Measures taken to
safeguard local jobs while reducing risk to environment
The
State Government will implement strict controls over Alcoa's mining operations
as the company begins the transition to a contemporary environmental approval
regime.
Alcoa's
operations directly employ almost 4,300 Western Australians, as well as a
further 1,700 contractors at its bauxite mines and alumina refineries in Perth,
Peel and the South West. In 2022 Alcoa spent over $1.5 billion on
contracts with local suppliers.
Alcoa's
mining, refinery and associated activities approvals are managed through a
60-year-old State Agreement – unlike other resources projects in WA, which are wholly
regulated through the Environmental Protection Act 1986 and the Mining
Act 1978.
The
Environmental Protection Authority (EPA) is currently determining whether to
assess Alcoa's current and proposed mining activities in the Darling Ranges,
following third party referrals earlier this year. Under the EP Act, a decision
to assess would require Alcoa's mining activities to cease immediately -
putting thousands of jobs at risk.
To
protect local jobs while ensuring Alcoa complies with environmental standards,
the State Government has issued a conditional exemption for Alcoa under section
6 of the EP Act.
The
exemption allows Alcoa to continue mining operations if the EPA determines an assessment
is required, while imposing strict controls on Alcoa's activities.
The
conditions of the exemption limit the physical areas in which Alcoa can explore,
clear and mine, and require regular compliance reporting to the State
Government. Any breach of conditions would see the exemption immediately
cancelled, and the State Government retains the right to withdraw or amend the
exemption at any point.
At
the same time, the State Government will approve Alcoa's 2023-2027 Mining and
Management Program (MMP), under its State Agreement.
The new MMP approval reinforces the EP
Act exemption conditions, and includes a range of additional conditions,
including:
- reconstituting an
independent committee to provide expert advice on hydrology matters;
- requiring a staged exit and rapid stabilisation
and rehabilitation of critical risk areas;
- immediate hand back of more than
1200ha forest previously approved for clearing, and an 800ha cap on annual clearing
approvals; and
- requiring Alcoa
to publish its MMP and associated reports, in the interest of transparency.
In
addition to these conditions, Alcoa must also commit a $100 million financial
guarantee to help fund Government's response in the unlikely event of an impact
to Perth's drinking water dams.
The
Alcoa Transitional Approvals Framework is expected to be a short-term measure
while Alcoa moves to contemporary regulation under the EP Act.
Comments attributed to Premier Roger Cook:
"Every
project in WA should be subject to the same rigorous environmental approval
system, but legacy issues mean Alcoa is yet to move to contemporary
approvals.
"Alcoa
is a major employer and contributes significantly to our regional economies, so
it's important we safeguard local jobs while this transition to a modern
approvals framework takes place.
"This
transitional framework allows us to support local jobs while strengthening
protections for our environment, and lays the groundwork for a long-term
approvals regime for Alcoa that meets modern standards."
Comments attributed to Environment Minister Reece Whitby:
"Along with the Western
Australian public, the State Government has high expectations Alcoa meets its
environmental obligations.
"We've made it clear to Alcoa
that protecting Perth's drinking water remains paramount.
"By allowing Alcoa to continue
operating while limiting where it can mine, clear and explore,
we are ensuring the State's high environmental protection standards are
upheld."
