Goals of the Community Alliance for Positive Solutions Inc. (CAPS):

CAPS propose that:

• 1. The recommendations of the CSIRO Research study of July 2003, as approved by the community, be implemented by ALCOA as soon as possible, with emphasis on health and social impact.

• 2. The entire towns of Yarloop/Hamel be designated a buffer zone, which will require total relocation of the towns, and all impacted residents to be compensated. The choices for compensation will encompass:

  • a. No resident of any impacted area to be out of pocket for any expenses incurred in the relocation. Value of the new residence and features of the property will be the total replacement value of the current residence and property, plus compensation and relocation costs.
  • b. Residents remaining in impacted areas until the buffer zoning is completed will be compensated with necessary transport, financial assistance, and other support needed to maintain their quality of life.
  • c. The construction of a new town, including buildings and infrastructure, for the residents of impacted areas who wish to remain as a community intact, offering a similar lifestyle to that which they are accustomed, located within 20 km of their current locations.
  • d. Residents who wish to relocate to a community other than the new location will receive total replacement, relocation costs and compensation.

The Plan:

In 2001/02 Alcoa introduced plans to build its third unit in Wagerup, at the cost of approximately $900 million. This unit was designed to produce around two million tonnes of alumina per year, increasing Alcoa's production at Wagerup to over 5.25 million tonnes per annum. The upgrade was delayed by the Government due to the on-going health and environmental concerns of the communities surrounding Wagerup Refinery.

In early 2004, Alain Belda, Alcoa's CEO, visited Western Australia, and in particular, the W.A. Government, and stated that if Alcoa is not allowed to upgrade the Wagerup Refinery to three units at a cost of $1.4 billion, Alcoa will take their money elsewhere. Also around this time, CAPS released a survey to the communities located between Waroona and Harvey. Fourteen percent of the surveys were returned, and the results indicated, among other things, that the majority of respondents felt the refinery will continue to grow irrespective of the communities' concerns and 75% felt the Land Management Proposal is unfair (see attachment).

We must state at this time that Alcoa has always maintained that there is NO problem with the Wagerup Refinery, either from the noise or odours emitted from this refinery or mud lakes, and they have maintained this stance since 1996. They have repeatedly requested community input on these matters when concerns have arisen, yet have never collaborated with the community to create any tangible solutions, nor have they been open and transparent in their agenda.

Within a week of the survey being released, CAPS member Merv McDonald was invited to meet with Bill Knight, the manager of Wagerup refinery, at his office. During this meeting, certain items were discussed: the survey/questionnaire, which Alcoa considered to be biased; why the survey was sent out, and at whose request; and, as Mr Knight stated, that Alcoa was going to build a third unit at Wagerup 2004/05.

At the first meeting, Mr Knight mentioned that he knew Vince Puccio's (CAPS) ongoing focus has been to relocate the Town of Yarloop. Merv stated that if Alcoa looked at the logic and overall consequences of what Vince was stating, they may find it to their benefit. Both Vince and Merv have never stated or intended a desire to close or reduce Alcoa's production at Wagerup. The intention of CAPS is to create a win/win situation for ALL (communities, Alcoa, shires, government).

Both Alcoa and the impacted communities can benefit from the CAPS plan in several ways:

• - Implementation of the full CSIRO study, as signed off by the community, would benefit all parties in terms of environmental/health considerations and required standards. New technology developed by CSIRO to satisfy environmental requirements could result in patents, to Alcoa's credit as a leader in sustainable development.
• - Quality of life for community residents can be maintained through relocation of Yarloop/Hamel to an area just east of the Old Coast Road, between Johnston/Riverdale roads, setting up a satellite town, with all modern facilities, amenities and infrastructure. Along with utilities, the new town would maintain the same features currently in Yarloop and Hamel, such as hospital, police station, school, hotel, shops, service stations, and churches. Community organizations such as the fire brigade, bowling club, and sports facilities would also be allocated appropriate venues. Done in such a way, Alcoa could become a role model for community and corporate relations worldwide.
• - All impacted residents, whether they wish to relocate to the new townsite, or to an area of their choice, will be compensated.
• - CAPS suggests a two-year time frame for the implementation of the plan.

The New Town

• 1. No one to be out of pocket.
• 2. Exchange of land in Yarloop area for new site between Johnston Rd. and Riverdale, west of Old Coast Rd.
• 3. Property exchange - new for old. Eg, if you now have half acre 3 X 2, lawn, 2 roses, you receive same -plus compensation for disruption of life, etc.
• 4. Mining of Yarloop. Royalties to be negotiated. Original residents have first choice to retain rights or have first option to buy back property when mining is finished. Otherwise, mined land can be used for farming and tree plantation at Alcoa's discretion.
• 5. New emergency/recovery hospital with frail aged care accommodation (serving region).
• 6. Centralised police station.
• 7. School could accommodate Yarloop and surrounding districts.
• 8. Central fire station.
• 9. Water sourced from Stirling Trunk to service new town and can be extended to service Preston Beach.
• 10. All other amenities for new town.
• 11. The freeway will be continued past Mandurah through to Bunbury from Perth, constructed close to Johnston Rd in Yarloop.
• 12. With the expansion at Pinjarra and Wagerup, Australind will not be able to travel on same line because of increase in Alcoa freight trains, therefore there is a need for a new line which can parallel new freeway.
• 13. Southwest Highway can be redirected to bypass Alcoa site.
• 14. Preserve history, eg. reconstruction of original hotel. Keep heritage buildings where they can create some sort of tourist attraction.

Why is this a good plan?

- The CSIRO study could be implemented ASAP. Then new state-of-the-art technologies can be created and included in expansion plans, benefiting Alcoa through new patents, saving money by not having to retrofit at later date, and being recognised as a world leader in community and environmental care.

- The community wins with the creation of a new town. Residents can start new life. All residents in impacted communities have a choice to move or stay and keep similar lifestyle, with compensation.

- The government wins by being recognised for its strong leadership, working closely with the community and Alcoa to support win/win situation.

- The shire benefits by the creation of a new town.

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