The Australian government authorized U.S. Mining giant Alcoa to continue clearing portions of the jarrah forest in Western Australia, despite the company’s history of illegal land clearing, a decision partially influenced by a critical minerals agreement with the Trump administration, according to a newly released document.
The document reveals Alcoa unlawfully cleared land for bauxite mining south of Perth for fifteen years, beginning in 2011, despite repeated warnings from the federal environment department. The company has agreed to pay a A$55 million (approximately $38.9 million USD) penalty for clearing forest between 2019 and 2025 without required approvals under the Environment Protection and Biodiversity Conservation (EPBC) Act, impacting habitat for nationally protected species. Environment Minister Murray Watt announced the penalty as an “enforceable undertaking” on Wednesday.
But, the newly released statement outlining the rationale for granting Alcoa a national interest exemption to continue clearing for another 18 months while expansion proposals are considered, demonstrates the decision was also tied to the U.S.-Australia critical minerals deal finalized last year. The deal focuses on securing supplies of gallium, a mineral crucial for defense and renewable energy technologies. The U.S. Department of War is investing in a 100 metric ton-per-year gallium refinery in Western Australia as part of the agreement.
Watt’s decision acknowledges the involvement of the Japanese government and Sojitz Corporation, joint venture partners with Alcoa in developing the gallium plant at Alcoa’s Wagerup refinery, with both governments contributing funding and equity. While acknowledging that these partnerships did not supersede Australian environmental laws, Watt stated the exemption was intended to “reinforce and give confidence” to both the U.S. And Japan regarding Australia’s commitment to the critical minerals framework.
Conservation groups have reacted with outrage. Matt Roberts, executive director of the Conservation Council of WA, called Alcoa’s fifteen years of illegal clearing “outrageous and an affront to every West Australian.” Georgina Woods, head of research and investigations at Lock the Gate, described the decision as “disgraceful,” stating the environment minister was “essentially told by the mining company that this action was necessary to discharge Australia’s obligations under the critical minerals deal with the United States.”
The national interest exemption power has historically been reserved for emergencies, such as bushfire response and the protection of endangered species. WA Premier Roger Cook expressed disappointment with Alcoa’s environmental record, but supported the exemption, stating it was necessary to allow for a modern environmental protection arrangement. He acknowledged a “long period of time” of disappointment with Alcoa’s performance regarding environmental protection and rehabilitation.
The federal environment department had informed Alcoa as early as 2011 that its mining operations required approval under Australian environmental laws. A department spokesperson stated that investigations into clearing prior to 2019 were not possible due to statute of limitations. Recent amendments to the EPBC Act, passed in November, further restrict the use of “continuous use” exemptions for vegetation cleared more than fifteen years ago.
Alcoa now acknowledges the need for EPBC Act approvals for its Huntly and Willowdale mining operations and has submitted an application for a strategic assessment. The company argued that without the exemption, it would be unable to maintain bauxite supply to its refineries and, gallium production. Alcoa maintains it operated under the belief that existing exemptions applied to its activities.
In a statement, Alcoa said the exemption would allow it to “fully modernise our approvals under the EPBC Act” and sustain thousands of jobs. The company also emphasized its voluntary agreements with the government for conservation programs and research within the Northern Jarrah Forest.
WA Greens upper house MP Jess Beckerling criticized the decision, stating it was “staggering to read that Alcoa has been clearing illegally since 2011” and that no penalty was imposed until now. She characterized the justification based on gallium production for the American military as “farcical.”
Minister Watt declined to provide further comment beyond a previous interview with ABC radio, where he described the penalty as “an unprecedented amount.” The department spokesperson stated the recent EPBC Act reforms aim to strengthen the regulator’s ability to prevent long-running non-compliance.
