The Environmental Protection Authority has rejected Hanson Construction Materials' proposal to expand its quarry at Red Hill.
EPA chairman Paul Vogel said the EPA would recommend that Environment Minister Bill Marmion reject the expansion plans, because it could not meet environmental objectives.
"Implementation of the proposal would lead to the destruction of six Aboriginal heritage sites that are of high significance to the Nyungah people of the Perth region," Dr Vogel said.
"This would not meet the EPA's objective to ensure that changes to the biophysical environment do not adversely affect historical and cultural associations.
"Another impediment to recommending approval is that visual impacts cannot be reduced sufficiently for this proposal.
"Also, the EPA's objective for landscape and landforms, to maintain their integrity, ecological functions and environmental values, cannot be met.
"Finally, the impact to faunal assemblages and the loss of connectivity between habitats and the adjoining conservation reserves, especially in the western section of the proposal site, does not meet EPA objectives."
The EPA did note, however, that Hanson Construction had not fully implemented an existing approval for the Red Hill quarry and there was still opportunity to expand the quarry in an easterly direction.