South32 has announced its intention to appeal against the conditions recommended by the Western Australian Environmental Protection Authority (WA EPA) for its Worsley Alumina project.
The company has flagged a $554m (A$831.36m) impairment charge, citing the recommended conditions as a challenge to the operation’s long-term viability.
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In 2019, Worsley Alumina initiated the environmental approval process for the Worsley Mine Development Project.
The aim was to access bauxite reserves necessary to sustain production levels.
In July 2024, the WA EPA recommended the project proceed but imposed conditions that South32 believes exceed reasonable environmental risk management measures.
These conditions, according to the company, are based on scientific assessments and decades of operational experience.
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By GlobalDataSouth32 plans to lodge an appeal concerning the WA EPA’s assessment report.
The company seeks to collaborate with the WA Government to align with the state’s environmental standards while maintaining Worsley Alumina’s operations, which have been integral to the South West region for more than 40 years.
The goal is to secure environmental approvals by the end of calendar year 2024.
Due to the uncertainty created by the WA EPA’s conditions, South32 has recognised an impairment charge of $554m, lowering the carrying value of Worsley Alumina to $2.03bn.
In a separate announcement, Reuters reported that a consortium led by Singapore’s Golden Energy and Resources (GEAR) has amassed $850m for the acquisition of South32’s Illawarra coking coal assets in New South Wales, Australia.
A syndicate comprising five private credit lenders and one global investment bank has agreed to lend $600m to GEAR M Illawarra Met Coal for buying the business.
South32 recently secured the Australian Foreign Investment Review Board’s clearance for the $1.65bn deal, which was announced in February this year.
