Alcoa's Big Deal: What It Means for Western Australia's Jarrah Forests

ABC South West WA reports on a big deal.

The topic is mining and the environment.

The report is from Tuesday, 7 July 2026, at 8:01 am.

Professor Kingsley Dixon is at Alcoa's Willowdale mine site.

In short, this is about a big company deal.

Environmentalists are worried about the jarrah forests.

Analysts say the deal might help find new mining areas.

What's next for Alcoa?

Alcoa needs approval for its $8 billion deal.

The deal could open up new areas for mining in Western Australia.

Alcoa will be the biggest bauxite miner if the deal goes through.

Botanist Kingsley Dixon talks about the possible effects on the forests.

The Worsley Alumina refinery is near Collie in Western Australia.

Alcoa's mining area is very big, covering over 7,000 square kilometers.

The company's current mining is mostly in the center of its lease area.

Alcoa says all mining activity needs regulatory approval.

Alcoa has a large minerals lease in Western Australia.

The company says the deal will help make the bauxite-to-aluminium chain stronger.

The deal is seen as a smart move by Alcoa.

With the deal, Alcoa will have rights to a large area of land.

Most of this land is high-quality, biodiverse forest.

Alcoa has faced opposition to its forest mining operations.

The company has already cleared a lot of the jarrah forests.

Alcoa was fined for illegally clearing native forest areas.

Professor Dixon says mining the southern part of the forests might not get as much attention.

Alcoa's mining footprint has grown a lot since 1984.

The deal gives Alcoa a large refining capacity in the southern region.

It also gives the company growth capacity and a longer supply of alumina.

South32 has approval to expand its bauxite mine in the northern jarrah forests.

The deal is not about expanding mining but about combining resources.

Analysts are unsure if the deal will lead to more mining in the jarrah forests.

The supply chain could be more efficient with the deal.

Expansion of mining in the forests is possible but not certain.

It would make economic sense if the market demand for bauxite stays strong.

Protesters have been against Alcoa's mining operations.

Many things need to align for the expansion to happen.

The takeover is about securing supply chains, not expanding mining.

Developing a mine plan and getting environmental approvals take years.

Alcoa's Pinjarra refinery produces a lot of alumina each year.

Alcoa has struggled with prices and profitability.

The company has mined bauxite in Western Australia since the 1960s.

Bauxite prices dropped due to a global oversupply.

Alcoa closed its Kwinana refinery because of high costs.

The remaining refineries are also struggling with costs.

Alcoa's Kwinana aluminium refinery was shut down last year.

The company is under significant cost pressure.

Acquiring South32's business could help Alcoa with efficiencies and market clout.

The deal might help Alcoa have more control over its costs and market.

The assets from South32 could be more beneficial for Alcoa's existing facilities.

The report is from Tuesday, 7 July 2026, at 8:01 am.

See more ABC coverage.

Promotion

Pratique d'écoute

Pratique d'écoute