Federal Approval Clears Path for Long-Term Worsley Alumina Expansion Amid Regulatory Conditions
South32 has obtained federal environmental approval for its Worsley Mine Development Project, paving the way for sustained bauxite mining and alumina production through at least fiscal year 2036.
- Federal environmental approval granted under EPBC Act
- Mining at new bauxite areas to start in Q4 FY25
- Project supports alumina production through FY36
- Approval conditions align with prior state environmental consent
- Significant employment and regional economic benefits expected
Federal Approval Unlocks Long-Term Mining at Worsley
South32 Limited has achieved a critical milestone with the federal government granting environmental approval for the Worsley Mine Development Project under the Environmental Protection and Biodiversity Conservation Act 1999. This endorsement follows the state-level approval secured in December 2024 and confirms regulatory alignment for the project’s next phase.
The approval enables South32’s Worsley Alumina operation to access new bauxite reserves adjacent to existing mining areas. Mining activities are slated to commence in the fourth quarter of fiscal year 2025, marking the start of an extended production horizon that is expected to sustain alumina output through at least fiscal year 2036.
Sustaining Production and Regional Employment
Worsley Alumina, a cornerstone of South32’s Australian operations, has been a major employer in the Peel and South West regions for over four decades. The project’s continuation promises to maintain thousands of jobs for workers and contractors, underpinning the local economy. CEO Graham Kerr highlighted the significance of the approval, emphasizing the project’s role in supporting communities and contributing to the global energy transition through responsible alumina production.
South32’s commitment to sustainability is further reflected in Worsley Alumina’s multiple certifications from the Aluminium Stewardship Initiative, recognizing responsible production practices. The federal approval’s conditions are substantively consistent with those imposed by Western Australia, ensuring environmental safeguards remain robust as mining activities expand.
Looking Ahead: Execution and Oversight
With federal and state approvals in place, South32 is poised to advance development of new mining areas. The company notes that commencement is subject to any additional secondary approvals, underscoring ongoing regulatory oversight. The project’s production targets are underpinned by a competent person’s assessment of ore reserves, providing investors with confidence in the forecasted output.
As South32 moves forward, the focus will be on executing the project efficiently while maintaining environmental and community commitments. The extended mine life at Worsley Alumina not only secures a vital raw material supply but also positions South32 to contribute meaningfully to the aluminium supply chain amid growing demand driven by decarbonization efforts worldwide.
Bottom Line?
South32’s federal approval marks a pivotal step in securing alumina supply and regional jobs well into the next decade.
Questions in the middle?
- What specific environmental conditions accompany the federal approval, and how might they affect project timelines?
- How will South32 manage potential risks related to secondary approvals or regulatory changes?
- What are the projected capital and operational expenditures associated with the new mining areas?