Alcoa Pays $36M to Protect Endangered Australian Forest

One of the world's largest aluminum companies just made history by agreeing to pay Australia's biggest environmental settlement ever.

Alcoa will pay $36 million to the Australian government for clearing parts of the endangered Northern Jarrah Forest without proper approvals between 2019 and 2025. The Pittsburgh-based company has mined bauxite, the raw ingredient for aluminum, from beneath this unique forest since the 1960s.

The Northern Jarrah Forest near Perth is a recognized biodiversity hotspot. It provides critical habitat for threatened black cockatoos and multiple marsupial species found nowhere else on Earth.

"It's well and truly the largest amount that's been paid by way of an enforceable undertaking around the environment laws nationally," said Senator Murray Watt, Australia's environment and water minister. The settlement resolves longstanding questions about whether Alcoa should receive exemptions from federal environmental review processes.

Alcoa CEO William Oplinger said the company welcomes "this important step in transitioning our approvals to a contemporary assessment process." The agreement includes an 18-month window for Alcoa to operate while securing proper environmental approvals.

The settlement comes as public scrutiny of Alcoa's environmental practices intensifies. Last summer, a proposed massive expansion of the company's mining operations drew 60,000 public comments. Local governments and multiple First Nations representatives voiced concerns about protecting the endangered forest.

The Bright Side

This record-breaking settlement shows environmental regulations gaining real teeth. Australia is proving that even global corporations valued at $16 billion must follow environmental laws designed to protect irreplaceable ecosystems.

The payment demonstrates growing recognition that biodiversity hotspots deserve stronger protection. As climate change and habitat loss accelerate worldwide, this enforcement action sends a clear message about accountability.

Alcoa maintains it has complied with federal law but agreed to acknowledge historical clearing practices. The company says it remains committed to responsible operations and working toward final regulatory decisions by the end of 2026.

The endangered Northern Jarrah Forest and its unique wildlife now have stronger safeguards moving forward.