Federal Government approves S32’s Worsley bauxite-to-alumina plans with Trump’s metals tariffs in play

South32 will forge ahead mining more aluminium feedstock bauxite at Boddington within months after securing a crucial environmental approval from the Federal Government. Environmental plans for a 15-year expansion of the Worsley mine were approved under a Ministerial Statement from the State Government in December, and needed to clear Federal approval as the final hurdle. Confirming the news on Wednesday, S32 said conditions attached to the Federal agreement were “substantively consistent” with State approvals. “The Federal Government’s approval of the Worsley mine development project is a positive outcome for Worsley Alumina and its workforce, the Peel and South West communities, and the local economy,” South32 chief executive Graham Kerr said. “Worsley Alumina has been operating for more than 40 years and is one of the largest employers in the region, supporting jobs for thousands of workers and contractors.” The mixed metals miner had threatened that up to 1700 jobs were at risk if it did not win support for eased restrictions on emissions limits and land clearing rules. S32 had submitted plans to expand its bauxite mining footprint in WA’s Peel region back in 2019, drawing fierce criticism from conservationists eager to protect the surrounding jarrah forest and ensure its eventual rehabilitation. Securing the nod to access new ground was crucial for S32 to ensure the operation stayed economical. The State recommended Worsley’s approval with conditions in July. S32 had argued against the attached restrictions, including forest restoration targets and what could be counted towards the miner’s commitment to net-zero at the carbon-intensive alumina refinery by 2050. Those appeals were ultimately granted by State Environment Minister Reece Whitby and waved through as part of S32’s State approval. Full details of Worsley’s Federal approval and its conditions are yet to be disclosed, but S32 said it will start mining areas near its existing operations by the end of the 2025 financial year, before moving to new areas that will keep the operation going until 2036. Alumina production from the site is expected at about 3.75 million tonnes for 2025 and 2026. Expansion of bauxite-to-alumina operations in WA coincides with the prospect of a 25 per cent tariff attached to aluminium and steel sold into the US. Australian companies potentially exposed to the tariff are waiting closely to see whether the outlined imposts come into force. Perth-headquartered S32 is yet to comment on the potential impact the hefty charges announced by US President Donald Trump earlier this week could have on its business. The topic will likely feature as a considerable talking point at the miner’s half-year update on Thursday. S32 mines bauxite from the Boddington site that is then refined into alumina, a feedstock material used to make aluminium. The miner has aluminium refineries in South Africa, Mozambique and Brazil. Shares in S32 were off 0.44 per cent at 1pm to $3.42.