PERTH, Australia – Alcoa Corporation (NYSE: AA, ASX: AAI) has reached an agreement with the Australian Federal Government to overhaul the environmental approvals process for its Western Australian mining operations. This move signals a significant shift towards modernizing regulatory frameworks under Australia’s federal Environment Protection and Biodiversity Conservation Act (EPBC Act), aiming to provide greater long-term clarity and certainty for both the company and its stakeholders.
At the heart of this agreement is a Strategic Assessment that Alcoa of Australia will conduct, covering current and future mining areas through to 2045. This comprehensive review, supported by recent amendments to the EPBC Act, is designed to offer a holistic perspective on potential environmental impacts across a broad geographic scope, focusing on significant flora and fauna.
In the interim, operations at the Huntly and Willowdale mines will continue under a National Interest Exemption (NIE) granted by the federal government. Alcoa of Australia has committed to maintaining its operational parameters, including limiting annual clearing to 800 hectares and increasing new rehabilitation rates to 1,000 hectares per year by 2027, all while adhering to EPBC Act requirements for environmental offsets.
William F. Oplinger, Alcoa President and CEO, emphasized the company’s commitment to responsible operations and welcomed the modernized assessment process. “This is an important step in transitioning our approvals to a contemporary assessment process that provides increased certainty for our operations and our people into the future,” Oplinger stated. He also highlighted the government’s recognition of the operations’ contribution to the Australian economy and the company’s role in supporting critical minerals production, underscoring Alcoa’s over 60-year history as a leading Australian aluminum producer.
While Alcoa of Australia maintains its compliance with the EPBC Act throughout its history, the company has agreed to a financial undertaking of A$55 million. This sum will be directed towards programs and research focused on improving the health of the Northern Jarrah Forest, enhancing habitat for threatened species, and controlling invasive flora and fauna. This commitment acknowledges historical land clearing and reflects Alcoa’s dedication to its previously announced environmental objectives.
The economic impact of Alcoa’s Western Australian operations is substantial. The company directly and indirectly employs approximately 5,500 people and supports thousands of additional jobs within its operating communities. In 2024, Alcoa invested A$2.7 billion with over 1,700 Australian suppliers. A significant portion of this economic activity, more than 70 percent of the company’s 2024 Australian revenue, was reinvested into the local economy through wages, local procurement, taxes, and royalties.
Crucially, the Strategic Assessment does not interfere with the ongoing environmental assessment process for the future Myara North and Holyoake mine regions of the Huntly mine, which is proceeding under both Western Australian State and Australian Federal environmental legislation. Alcoa is actively collaborating with stakeholders to secure Ministerial decisions by the end of 2026. The company anticipates that mining in these new significant mine regions will commence no earlier than 2029, with expectations that bauxite quality will remain consistent with recent grades until then.
Alcoa will record an incremental charge of $19 million ($13 million after-tax, or $0.05 per share) in its fourth quarter 2025 Cost of Goods Sold to adjust environmental reserves related to these enforceable undertakings. The full provision of A$55 million is expected to be paid out in 2026.
**About Alcoa Corporation**
Alcoa Corporation (NYSE: AA; ASX: AAI) stands as a global leader in the bauxite, alumina, and aluminum products industry, driven by a vision to build a legacy of excellence for future generations. Guided by core values of integrity, operational excellence, care for people, and courageous leadership, Alcoa’s purpose is to transform raw potential into tangible progress. Since pioneering the process that made aluminum an accessible and integral material in modern life, Alcoa’s workforce has consistently driven innovation and established best practices, leading to enhanced efficiency, safety, sustainability, and strengthened communities worldwide.
**Dissemination of Company Information**
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**Cautionary Statement on Forward-Looking Statements**
This press release contains statements that pertain to future events and expectations, qualifying as forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are identifiable by words such as “aim,” “ambition,” “anticipates,” “believes,” “could,” “develop,” “endeavors,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,” “plans,” “potential,” “projects,” “reach,” “seeks,” “sees,” “should,” “targets,” “will,” “working,” “would,” or similar terminology. Any statement by Alcoa that reflects expectations, assumptions, or projections about the future, other than statements of historical fact, is considered a forward-looking statement. Forward-looking statements do not guarantee future performance and are subject to both known and unknown risks, uncertainties, and changes in circumstances that are inherently difficult to predict. While Alcoa believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, no assurance can be given that these expectations will be realized. Actual results may differ materially from those projected in these forward-looking statements due to a variety of risks and uncertainties. Factors that could cause actual results to deviate from these projections include, but are not limited to, industry-specific conditions, global economic factors, and other general economic conditions. Additional information concerning factors that could cause actual results to differ materially from those projected is available in Alcoa’s filings with the Securities and Exchange Commission. Alcoa disclaims any obligation to publicly update any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.
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