South32 will work alongside the Western Australian Government to ensure its Worsley Alumina operation meets the state’s environmental standards following a decision from the WA Environment Protection Authority (EPA).
In 2019, Worsley Alumina commenced the environmental approval process with the WA EPA for the Worsley mine development project, which aims to enable bauxite access to sustain production.
Following environmental assessment and stakeholder consultation, the WA EPA recommended on July 8 2024 that the proposal may be implemented.
However, South32 said the WA EPA’s conditions will create “significant operating challenges” for Worsley Alumina and will “impact its long-term viability”.
According to South32, the WA EPA’s conditions may result in the company recognising an impairment of $US554 million ($827 million), reducing Worsley Alumina’s carrying value to $US2.02 billion ($3 billion).
“In Worsley Alumina’s view, several of the recommended conditions go beyond reasonable measures for managing environmental risks of the proposal based on scientific assessment and decades of operating experience,” South32 said.
In order to secure the environmental approvals by the end of the year, South32 will lodge an appeal against the WA EPA’s assessment report and will work closely with the WA Government to ensure Worsley Alumina abides by the state’s environmental standards.
The Worsley Alumina operation in WA comprises a bauxite mine located near Boddington and an alumina refinery located near Collie.
Once bauxite is mined from the operation, it is transported to the alumina refinery by an overland conveyor. The material is then transported to the Bunbury port by rail. As the material arrives in Bunbury, it is shipped to various smelters around the world.
South32 owns 86 per cent of the operation. Japan Alumina Associates (Australia) owns 10 per cent and the remaining four per cent is held by Sojitz Alumina.
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