The Western Australian government has introduced stricter regulations for Alcoa's bauxite operations in the state's southwest and approved it to continue until 2029.
Environment Minister Matthew Swinbourn says the community is concerned about current and future bauxite mining in the Northern Jarrah Forest, near Perth.
"We recognise the importance of this region in supporting WA's water supply, biodiversity, recreation, and tourism," he said on Thursday.
"The new conditions will deliver enhanced protections for public drinking water sources, black cockatoo habitat and other environmentally significant values."
Alcoa operates under a temporary exemption order in WA while the state's environmental watchdog assesses the company's bauxite mining proposals.
The new regulations aim to bolster environmental protections "to ensure Alcoa is meeting government and community expectations".
The restrictions included expanded buffers for water reservoirs, black cockatoo nesting trees and significant trees to prevent mining in these areas.
Alcoa will also have to undertake mandatory fauna surveys, GPS recording, tree tagging and fencing before mining.
WA's jarrah woodlands are home to many endangered species, including Carnaby's and Baudin's black cockatoos.
Large portions are designated as state forest.
Alcoa has mined bauxite in WA's southwest for 60 years and operates two bauxite mines and two alumina refineries, after the Kwinana Alumina Refinery shut last year.
It said it would ensure its mining operations were in line with the new regulations, "which provide strong protections for the environment".
"Alcoa remains focused on meeting evolving stakeholder and community expectations," a spokeswoman said.
The company said its operations employ about 4000 people and it spent $2 billion with local businesses and provided $6.7 million in funding to local community organisations in 2025.
The environmental assessment of Alcoa's current and future mining is ongoing, and a ministerial decision is expected in 2027.Â
The company has faced significant community criticism in recent years for unlawfully clearing protected native jarrah forest and critical black cockatoo habitat without proper approval.
It previously agreed to pay $55 million to restore the environment as part of an enforceable undertaking reached with the federal government for habitat destruction in the Northern Jarrah Forest between 2019 and 2025.
Concerns have also been raised about the potential risk its mining operations pose to WA's drinking water supply.
In 2023, the Environmental Protection Authority found a pipeline built by Alcoa without approval was at risk of leaking toxic chemicals into a dam.