US mining giant Alcoa could be scrutinised by Western Australia’s environmental watchdog for the first time following concerns their operations could impact Perth’s drinking water supplies.
Key points:
- WA’s environmental watchdog has deemed a referral of Aloca’s mining plans as “valid”
- The move means Alcoa’s operations could be assessed by the EPA for the first time in history
- It follows concerns raised by the miner’s proximity to one of Perth’s main water supplies
It would be the first time in the company’s 60-year history in the state that the Environmental Protection Authority (EPA) reviews its yearly Mining Management Plan — normally assessed behind closed doors by the state government.
Alcoa’s bauxite mine in Jarrahdale is near the Serpentine drinking water catchment, which made up about 18 per cent of Perth’s critical drinking water supplies last financial year.
The EPA today deemed partially “valid” a referral of the plan from environmental lobby group WA Forest Alliance.
The “valid” determination means the EPA will spend the next week asking the public whether or not it should assess parts of Alcoa’s mining footprint, before deciding whether to proceed.
Behind closed doors
Alcoa’s operations in WA’s northern jarrah forest region are overseen by the Alumina Refinery Agreement of 1961 which allows it to bypass the state’s environmental regulator.
It instead submits a yearly mining plan to a group of state government bureaucrats known as the Mining and Management Program Liaison Group (MMPLG), with final approval coming from the minister for state development.
The process is run by the department responsible for fostering industry and is conducted behind closed doors with no public consultation other than the input of a select group of landowners and government departments.
Alcoa Australia president Matt Reed said the alumina company was looking for an orderly transition into the EPA process.
“There must be a reasonable transition period during which we will continue to work collaboratively with various stakeholders and regulators to meet evolving requirements and expectations,” he said.
WA Premier, and State Development Minister, Roger Cook has been contacted for comment.
Drinking water concerns
For the last two years, the MMPLG had refused to approve fresh mining plans for the company due to fears it was operating dangerously close to Perth’s drinking water supply in the Serpentine basin.
In August 2021, the Water Corporation requested Alcoa stop operations near the Serpentine Dam as water bodies were only 100 metres from mining activities.
It expressed concern for the potential of toxic run off to enter the dam, which made up about 18 per cent of the city’s water supply last financial year.
Earlier this year, then premier Mark McGowan met with Alcoa executives to make “clear to the company that risks to catchment water need to be appropriately managed”, according to the state government.
“Alcoa’s plan was approved subject to strict conditions, including a requirement not to mine in specified higher risk areas without first submitting a revised risk management plan that adequately addressed the concerns raised by the government,” a state government spokesperson said.
“To date, Alcoa has not satisfied those concerns and is not currently mining in those areas.”
Alcoa proud of environmental record
Campaign director at the WA Forest Alliance Jess Beckerling said she hoped the decision led to better environmental outcomes.
“For decades Alcoa has hid behind a secretive approvals process, but now the massive impacts that the company is having on the forests, and the major risk it poses to drinking water, can be made subject to a full and public environmental review,” she said.
“It is vital that the EPA goes ahead with the most stringent assessment, and that it results in forest, wildlife, water, public health and climate protections.”
In a statement published on Monday morning, Mr Reed moved to alleviate concerns about the impact on drinking water.
“We are increasing controls to protect drinking water, stepping up mine site rehabilitation and enhancing the management of social impacts including recently announced no mining zones around the towns of Dwellingup and Jarrahdale,” he said.
“We are proud of our environmental track record and economic and social contributions to WA over the last 60 years and firmly believe we can continue to operate safely and responsibly.”
He said Alcoa has happy to be involved in the process and was proof the miner was modernising its approvals framework.
Alcoa’s bottom line impacted
Alcoa’s chief executive officer Roy Harvey told investors last month the delay in approvals from the state government had cost the company $66 million.
“To give this complex regulatory process appropriate time, we are now mining lower grade bauxite in previously approved areas,” he said.
“Using lower grade bauxite has a cost. It means using more raw materials and producing less alumina per tonne of bauxite.”
He said there was no ‘fixed timetable’ to address regulatory concerns, and that he believed the state agreement process provided “appropriate environmental and social protections.”
The company’s share price fell six per cent after the meeting, but has since recovered.
Mining lower grade bauxite — the raw material of alumina — has also forced the miner to become more water intensive.
Its 2022 sustainability report said WA operations had become 2.3 per cent more water intensive than the previous year as “factors such as bauxite quality influence the amount of water required to produce alumina.”
It follows a decision by WA water authorities to slash Alcoa’s water licence by a third due to a dramatic reduction in rainfall.
The company currently uses three and a half billion litres of water a year.
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