The Australian environment minister, Murray Watt, has fined US mining giant Alcoa $55 million for illegal clearing of land for bauxite mining in Western Australia’s northern jarrah forests, south of Perth. The penalty covers more than 2,000 hectares cleared from 2019 to 2025 without required approval. Watt called it an “unprecedented” payment focusing on conservation. Despite the fine, Alcoa received an 18-month exemption to clear more forest while the government reviews its proposal to extend mining operations to 2045. The northern jarrah forests are home to protected species like the endangered carnaby’s and baudin’s black cockatoos. Of the $55 million penalty, $40 million will be used to buy permanent ecological offsets. Additionally, $5 million will support conservation programs by the Australian Wildlife Conservancy, $6 million will fund invasive species control by the state government, and $4 million will back research at the University of Western Australia. Alcoa said it ‘‘maintains it has operated in accordance with the EPBC Act’’ but agreed to pay for these environmental measures. Minister Watt used a special national interest provision in the nature laws to grant the clearing exemption, marking the first time it benefits a mining company commercially. The exemption lets Alcoa continue clearing while the government conducts a strategic review of its Huntly and Willowdale mines, 100 km south of Perth. Watt said this move ensures supply of bauxite and supports gallium production, vital for renewable energy technologies like solar panels and wind turbines, as well as defence industries. The exemption also helps secure about 6,000 jobs linked to the mining operations. Alcoa promised to limit clearing to 800 hectares yearly under the exemption and increase land rehabilitation to 1,000 hectares annually by 2027. CEO William Oplinger said the company is committed to responsible operations and appreciates the government’s support. Meanwhile, environmental groups criticized the decision. Matt Roberts of the Conservation Council of Western Australia said, “Rehabilitation is not equal to the damage they’re doing to our forest.” The Biodiversity Council warned that granting a commercial exemption on economic grounds sets a “dangerous precedent,” meant only for emergencies or defence. Tania Constable of the Minerals Council of Australia welcomed the decision as a balanced outcome supporting jobs and stronger environmental assessments.