U.S. mining giant Alcoa has been handed an AU$55 million penalty for illegally clearing thousands of acres of forest in Western Australia, including a specific habitat type found nowhere else that is home to endangered birds.
What's happening?
Between 2019 and 2025, Alcoa cleared more than 2,000 hectares (nearly 5,000 acres) of Western Australia's northern jarrah forests without the required approval under Australia's Environment Protection and Biodiversity Conservation Act, according to The Guardian. The forest is critical habitat for endangered Carnaby's cockatoos and Baudin's black cockatoos, among other protected species.
Australia's environment minister, Murray Watt, called the resulting penalty, known as an enforceable undertaking, "unprecedented" and said that the compensation for habitat destruction was "the largest conservation-focused commitment of its kind."
The AU$55 million, or roughly $38.9 million USD, breaks down as follows: AU$40 million to secure permanent ecological offsets, AU$5 million to the Australian Wildlife Conservancy, AU$6 million to state government invasive species control, and AU$4 million to the University of Western Australia for forest research.
Alcoa maintained in a statement that it "operated in accordance" with the Conservation Act while agreeing to pay anyway.
Why is the clearing of Australian forests concerning?
Jarrah forests are home to wildlife that exist nowhere else in the world, according to Australia's Wilderness Society. Once strip-mined, they cannot be restored to their original state.
"Rehabilitation is not equal to the damage they're doing to our forest," said Matt Roberts of the Conservation Council of Western Australia to The Guardian.
However, according to The Guardian, the same government issuing the penalty also granted Alcoa an 18-month exemption to continue clearing habitat while a proposed expansion of its mining operations through 2045 is reviewed. The Biodiversity Council noted it appears to be the first time a commercial activity has received an exemption on purely economic grounds since Australia's nature laws took effect in 2000, a point also noted by Sustainability Magazine.
"The national interest exemption was intended for matters of emergency response, defence, and national security, not as a convenience for resource companies committing environmental offences," said Lis Ashby of the Biodiversity Council to The Guardian.
Corporations being penalized for prioritizing profit over legal and environmental obligations is nothing new. In 2024, an engine manufacturer reached a settlement with the U.S. Justice Department and the State of California for over $1.6 billion for installing devices that bypassed pollution controls. The same federal government administration also fined chemical giant DuPont around half a million dollars for releasing known carcinogens into the atmosphere.
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Save $1,000 this year 💸 What's being done about forest clearing in Australia?
The Australian penalty is a meaningful step toward accountability, even if it doesn't fully undo the damage. Funds directed to the Australian Wildlife Conservancy and invasive species control will support ongoing efforts to protect the species most affected by the company's actions.
Individually, supporting conservation organizations working in threatened ecosystems, educating yourself about greenwashing, and staying informed on the environmental records of major corporations are critical ways to push for stronger protections.
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