A life-of-mine extension project for South32’s Worsley Alumina has been given a conditional green-light by Western Australia’s Minister of Environment following recommendations from the Western Australian Environmental Protection Authority (WA EPA), with the company now expecting federal approvals for the program next year.
The Environmental Protection Authority had recommended conditional approval of Worsley Alumina mine life extension.
However, Worsley Alumina lodged an appeal in relation to the authority’s assessment report, saying some provisions created “significant operating challenges, and went beyond reasonable measures for managing environmental risks based on scientific assessment and decades of operating” experience.
On Friday, South32 said the Minister of Environment’s determination on December 12 that the project proceed with conditions was “a positive outcome” for Worsley Alumina.
“We are pleased to advise that the Minister has determined after considering available information, that the EPA’s assessment and overall conclusion that the Project may be implemented, subject to conditions, is reasonable,” revealed South32.
The West Australian Environment Minister had also consented to the Appeals Committee’s recommendations for the amendment of some “conditions based on the arguments” presented during the appeals process by Worsley Alumina.
“In particular, it (Minister’s determination) is consistent with the Western Australian Government’s Greenhouse Gas Emissions Policy for Major Projects2, with greenhouse gas emissions to be regulated in accordance with the Commonwealth Government Safeguard Mechanism and unnecessary duplication between Commonwealth and State regulation removed,” said the company.
Despite the conditional approval, South32 added that a detailed assessment of other conditions was underway.
For the quarter to end September, Worsley Alumina’s saleable production declined by 7% due to planned calciner maintenance works while the company managed constrained bauxite supply.
The Worsley Alumina operation also attained performance standard certification against the Aluminium Stewardship Initiative (ASI), a certification organisation that aims to foster responsible production, sourcing and stewardship of aluminium.
In October, the Western Australian State Government announced that it would defer regulation of greenhouse gas emissions to the Federal Government’s Safeguard Mechanism. This shift is expected to remove policy inconsistencies that currently exist between the State and Federal Government with regard to greenhouse gas emissions, said South32.
With net debt having declined by $329 million to $762m in the year to June 2024, revenues in South32 fell 3% to $5.4 billion. The company’s overall underlying earnings before interest, taxes, depreciation, and amortization (Ebitda) declined by 29% to $1.8bn, resulting in a net loss post tax of $203m.
The post tax loss was a consequence of an impairment charge of $388m respect of Worsley Alumina in Western Australia and a further impairment of $248m for the Cerro Matoso operation in Colombia. These were however offset by a $139m impairment reversal for the now disposed Illawarra Coal business.
BUSINESS REPORT