Federal Environment Minister Murray Watt’s decision to allow Alcoa to continue destroying Western Australia’s jarrah forest for another 18 months is a concerning extraordinary use of the “national interest” exemption under our federal environmental laws.  

Minister Watt announced on Wednesday he had “granted a national‑interest exemption to Alcoa allowing for limited land clearing to continue its mining operations for a period of 18 months.” [1] 

The exemption follows a record $55 million penalty for Alcoa’s breaches of federal environmental laws between 2019-2025. 

This penalty takes the form of an enforceable undertaking, which is a legal agreement between the government and a proponent to address breaches of the law.  

The national interest exemption power has only been used eight times over the last five years, exclusively for emergency works in the interests of safety or to rescue a species from potential extinction. [2]  

The power was only used once in 2025, for emergency works during the 2025-26 Queensland summer storm season. 

Minister Watt’s formal reasons for granting the national interest exemption were published late on Thursday (February 19). [3] 

The reasons rely on the potential for byproducts of Alcoa’s bauxite mining to produce gallium, identified as a critical mineral, and Alcoa’s partnerships with the governments of the United States and Japan. These are very broad definitions of the ‘national interest’. Such a broad approach to interpretation of the ‘national interest’ could see the power used in respect of almost any activity.   

Along with the exemption, Minister Watt announced a process of strategic assessment of Alcoa’s ongoing operations.  

“Giving out this exemption to a company that has been breaching federal environmental laws for years is not what the power was designed for,” EDO Special Counsel Ruby Hamilton said. 

“This announcement looks like a great outcome for Alcoa and a terrible outcome for nature, accountability and public confidence in our environmental laws. 

“Alcoa will lose the equivalent of two days of its annual revenue to pay this fine but has gained months of exemptions and a special pathway for approval to operate for decades to come. 

“Given the scale of legal breaches, a penalty of only $55 million and support to continue activities outside of federal environmental laws is clearly a good deal for Alcoa. 

“We are concerned that the minister has characterised the proposed strategic assessment as a way to “regularise environmental approvals” for Alcoa out to 2045. 

“The federal government needs to deliver an accountable process under environment laws that properly assesses whether the impacts of mining the Northern Jarrah Forest should be approved at all. 

“Australia’s national interest is in protecting our iconic species, not overriding protections because they are inconvenient for a multinational company that has been breaching environment laws for many years.” 

References 

[1] Alcoa path to compliance and environmental accountability, media release, Federal Environment Minister Murray Watt, 18 February 2026.  

[2] For example, see the s158 exemptions in relation to: emergency works in respect of Victoria’s 2024-2025 bushfire season: MS24-002073-Statement of Reasons (12 January 2026); safety operations at the Northern Endeavour Facility: Statement of reasons for granting an exemption under section 158 of the EPBC Act (12 December 2022); the red handfish (21 December 2023): Statement of Reasons. 

[3] Statement of reasons for granting an exemption under section J 58 of the Environment protection and Biodiversity Conservation Act 1999 (Cth) (dated 18 February 2026, published 19 February 2026). 

Media contact 

James Tremain | 0419 272 254