“Regulatory hall pass”: $55 million payment lets Alcoa continue clearing endangered Northern Jarrah Forest

The federal government has struck a ‘deal’ with Alcoa that allows the mining giant to continue clearing the Northern Jarrah Forest, despite findings that it illegally destroyed habitat for nationally protected species between 2019 and 2025.

Under the agreement, Alcoa will pay $55 million through ‘enforceable undertakings’—an outcome the federal government is claiming as “the largest conservation-focused commitment of its kind.” 

In reality, by not prosecuting Alcoa, the government has essentially handed the US-mining giant a “Get Out of Jail Free” card—transforming what should have been a massive regulatory breach into a strategic endeavour.  

Federal Environment Minister Murray Watt has also granted the company a National Interest Exemption (NIE), further facilitating Alcoa’s continued destruction of the Northern Jarrah Forest by allowing clearing to continue. 

To date,  National Interest Exemptions have been reserved for national emergencies. Now, the federal government has unleashed a dangerous precedent in using this instrument for the retrospective authorisation of illegal clearing and protection of industry over the environment.   

To round it out, Minister Watt also announced the federal government would be undertaking a strategic assessment of Alcoa’s operations to “guide more sustainable mining at its Huntly and Willowdale mining operations.” 

The Northern Jarrah Forest is critical habitat for three species of black cockatoo and many other threatened plants and animals. It is also a major water catchment for Perth and an important carbon store in a drying climate. 

For more than 60 years, Alcoa has mined bauxite in this forest. More than 28,000 hectares have been cleared without a single hectare being successfully rehabilitated to the WA government’s rehabilitation criteria. 

In September 2025,  the Wilderness Society, the WA Forest Alliance and Conservation Council of WA  filed a greenwashing complaint with Ads Standards Australia against Alcoa’s misleading rehabilitation claims. The claim was successful.

In January 2026, a potential breach of its Exemption Order was identified when it was reported that Alcoa had mined within 10m of a black cockatoo significant tree, where the 400 year old tree—which provided critical black cockatoo habitat—has now died. This is in addition to other known breaches against its current mining conditions relating to black cockatoo habitat.

Alyx Douglas, WA Campaigns Manager for Wilderness Society, said, “When a company is found to have illegally cleared protected habitat, people expect strong enforcement. Instead, Alcoa has been essentially handed an invoice that barely touches the sides of their annual profit, and permission to keep going. It’s like a regulatory hall pass.

“The Northern Jarrah Forest is already under immense pressure from climate change and drying conditions. Allowing continued clearing of critical black cockatoo habitat pushes these species closer to the brink of extinction.

“The $55 million payment does not restore destroyed habitat. It does not replace lost nesting trees and food sources for black cockatoos. And it does not halt further clearing.

“The federal government should suspend further clearing in the Northern Jarrah Forest until a full, transparent and independent assessment determines whether mining can occur without irreversible harm to threatened species, water and climate.”

In recent years, Alcoa has faced scrutiny over environmental breaches, rehabilitation claims and community concern. Over this time, public pressure on the mining giant has intensified, with record numbers of submissions lodged against further mining expansion proposals in 2025.