Alcoa Pays Australian Government $36 Million for Unlawful Forest Clearing

The metals giant agrees to settlement over unauthorized deforestation in the Northern Jarrah Forest.

Published on Feb. 22, 2026

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Pittsburgh-based Alcoa will pay the Australian government $36 million (AUD $55 million) to settle a longstanding dispute over the company's 'unlawful' clearing of endangered forest in the Northern Jarrah region without proper approvals between 2019 and 2025. The agreement includes an 18-month exemption for Alcoa to continue operations while seeking the necessary environmental approvals.

Why it matters

Alcoa's mining operations in the Northern Jarrah Forest, a recognized biodiversity hotspot, have drawn increasing scrutiny from regulators and the public over environmental concerns. The settlement highlights the growing pressure on companies to comply with environmental regulations, even for long-established operations.

The details

Alcoa began mining bauxite, the raw material for aluminum, in the Northern Jarrah Forest in the 1960s, but its footprint has expanded in recent years. The Australian government accused the company of clearing tracts of the endangered forest without the required federal approvals. Alcoa maintains it has complied with the law but agreed to the settlement to 'acknowledge historical clearing'.

  • Alcoa has been mining bauxite in the Northern Jarrah Forest since the 1960s.
  • Between 2019 and 2025, Alcoa allegedly cleared parts of the forest without proper approvals.
  • On February 18, 2026, Alcoa agreed to pay the Australian government $36 million (AUD $55 million) to settle the dispute.

The players

Alcoa

A global metals company based in Pittsburgh, Pennsylvania, that mines bauxite and produces aluminum. Alcoa has operated in Australia's Northern Jarrah Forest since the 1960s.

Australian Government

The federal government of Australia, which accused Alcoa of unlawfully clearing parts of the Northern Jarrah Forest and reached a $36 million settlement with the company.

Murray Watt

Australia's environment and water minister, who stated that the $36 million payment is the largest amount ever paid for an environmental violation under Australian law.

William F. Oplinger

Alcoa's president and CEO, who said the company is committed to responsible operations and welcomes the transition to a 'contemporary assessment process' for its approvals.

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What they’re saying

“We are committed to responsible operations and welcome this important step in transitioning our approvals to a contemporary assessment process that provides increased certainty for our operations and our people into the future.”

— William F. Oplinger, President and CEO, Alcoa (Alcoa statement)

“It's well and truly the largest amount that's been paid by way of an enforceable undertaking around the environment laws nationally.”

— Murray Watt, Australia's environment and water minister (Australian broadcasters)

What’s next

Alcoa is still seeking approvals from the state of Western Australia to massively expand its mining operations in the Northern Jarrah Forest. The decision on this proposal is expected by the end of 2026.

The takeaway

This settlement highlights the growing pressure on companies like Alcoa to comply with environmental regulations, even for long-established operations. It also underscores the importance of biodiversity protection, as the Northern Jarrah Forest is a recognized hotspot that hosts numerous threatened species.