Aluminium giant Alcoa pushes back timeline for approval of South West bauxite mine transition plan

West Australian

17-07-2025

Mining giant Alcoa is banking on a lengthy delay before contentious plans to expand bauxite mining operations in WA's South West jarrah forests get the final nod.
WA's Environmental Protection Authority launched a 12-week public comment period at the end of May covering the US-listed company's 2023-27 plans for future mining locations within the Huntly mine area, which were first referred for assessment to the regulator in 2020.
Alcoa is also proposing a 5 per cent increase to capacity at its Pinjarra alumina refinery after outlining a blueprint for the next 20 years of operation.
EPA chair Darren Walsh said the decision to release both documents simultaneously would ensure better consideration of the combined and cumulative impacts.
'A combined public review will also be easier and more efficient for the community and stakeholders,' he said.
'The sheer volume, the unique biodiversity of the northern jarrah forest, and the number of environmental factors to consider means a 12-week public consultation period is entirely appropriate.'
Releasing its second-quarter results in the US overnight, Alcoa conceded plans for the next major mine regions — Myara North and Holyoake — and the expansion at the Pinjarra refinery would likely generate a paperwork avalanche.
'Following this public consultation period and the company's response to any clarifications requested by the WA EPA, the WA EPA will publish its assessment and recommendations,' the company said in its update.
'An appeals process of the assessment and recommendations will follow before Ministerial decisions are finalised.'The Ministerial decisions were expected by the first quarter of 2026 per the indicative timeline the WA EPA set in the third quarter of 2024.
'From both the company and the WA EPA perspective, the indicative timeline is no longer achievable primarily due to the complexity related to advancing both mine approvals, the extensive documentation provided by the company and independent experts, and the additional work expected in summarising and responding to submissions received in the public comment period.'
Aloca said it hoped to have further clarity on a final approval timeline from the EPA at the end of the public comment period.
The delay leaves Alcoa reliant on lower-grade ore to feed its Pinjarra plant. It also has a refinery at Wagerup.
The company blindsided workers at its Kwinana refinery in early 2024 when it announced a decision to mothball the plant.
It blamed poor market conditions, the plant's age, and low grades of bauxite mined in WA. The American giant sought to downplay the role of red and green tape at the time of the decision, despite previously warning that environmental approval delays were forcing mining to move to lower-grade ores.
Alcoa in November late last year moved to reactivate a mine site within the Huntly complex near Jarrahdale — left idle since 2014 — in a last-ditch bid to replace ore from the stalled 2023-27 transition project and keep the Pinjarra refinery firing.
Alcoa, the largest US aluminium producer, said tariffs on imports from Canada cost it $US115 million ($177m) in the second quarter, showing how US President Donald Trump's trade agenda has affected the industry.
The company redirected Canada-produced aluminium to customers outside the US to mitigate additional tariff costs, it said in its second-quarter update.
Metal producers are navigating the trade tumult Trump created after raising import tariffs on steel and aluminium, first to 25 per cent in March and then to 50 per centin June, in an effort to revive domestic production.
Alcoa's latest toll from tariffs is about six times more than in the first quarter when the Pittsburgh-based firm said the levies, which were then 25 per cent, had cost it an additional $US20m.
Mining giant Rio Tinto also revealed Wednesday that its Canada-made aluminium generated costs of more than $US300m in the first half due to the tariffs.
Alcoa has had extensive conversations with administrations on both sides of the border, including directly with Trump, Alcoa chief executive William Oplinger said on a call following the earnings report.
Mr Oplinger repeatedly has warned US customers will bear the costs of tariffs on aluminium producers.
'While we're not particularly thrilled with the tariffs,' he said, 'our customers are paying significantly higher for aluminum in the United States than anywhere else in the world.'
Alcoa reported revenue of $US3.02 billion for the period — down from the first quarter's result of $3.34b but higher than $US2.9b recorded the same time last year.
Profit slid to $US164m, down sharply from $US548m in the March quarter but well up on the $US20m result from the same time last financial year.