Qube calls for Mandogalup rezone

Qube Property Group boss Mark Hector is calling on the government to free up land around Alcoa’s Kwinana refinery for residential development.

The Subiaco-based land developer, which owns 147 hectares in Mandogalup, has hit out at Alcoa’s decision to curtail instead of close its alumina refinery, which is near residential estates. 

Mr Hector, managing director at Qube, said the aluminum giant's decision left landholders around the site in limbo, as land around the refinery was quarantined as a buffer zone.

The state government gazetted 330 hectares of land to the east of Alcoa’s residue disposal area as an improvement plan (IP47) area, meaning it will determine its future use.

An extension of Hammond Road runs through the middle of the land, with the future of a 71-hectare space to the east of the proposed road yet to be established.

Qube Property Group owns 20 hectares within that 71-hectare zone, where they could potentially develop 250 lots for housing.

Qube Property Group managing director Mark Hector said Alcoa’s decision to curtail its operations was a “slap in the face” to nearby land developers.

“It’s our land. But through their operations they are trying to force a buffer onto privately held land,” he told Business News.

“We find the fact that they’ve curtailed their operations as a bit of a slap in the face.

“Logic says that Alcoa curtailing their operations should free up land for residential development in the Mandogalup area, but the way Alcoa has phrased it says it is not a closure.”

Mr Hector added that this was the ideal opportunity for the government to exercise its powers under IP47 to unlock the land for residential use.

“There is an opportunity for the government to revise their use of this area given Alcoa’s decision, to unlock much-needed housing,” he said.

In December last year, the Environmental Protection Authority made a determination not to assess the Mandogalup land bound by the improvement plan.

Mr Hector agreed that land to the west of the proposed Hammond Road extension should be kept for industrial use.

“We believe all of the land (71 hectares) to the east side of the future Hammond Road extension should be zoned Urban releasing a further 1,000 lots in to the market,” he said.

Qube is the single largest landholder on the 71ha patch, with Satterley Property Group owning land to the east and private investors owning land within the 71ha.

Alcoa of Australia wrote to surrounding landholders last month, including QUBE Property Group, in February indicating its intentions for the site.

“We are curtailing Kwinana refinery – not closing – and … we remain committed to WA in the long term,” the letter stated.

“We will continue to assess options for the refinery, monitoring the factors that have led to this decision to determine its long-term future.

“The curtailment will be phased to ensure it is done safely and responsibly. We anticipate production will cease around the third quarter of 2024. Certain processes, however, will continue until about the third quarter of 2025.”

DPLH pubilc consultation document. 

An Alcoa spokesperson said the decision to curtail its operations at Kwinana was based on a range of factors impacting its competitiveness.

These include age, scale, operating costs, current bauxite grades and market conditions.

“We continue to monitor relevant conditions as part of our consideration of the long-term future of the refinery,” the spokesperson said.

“During curtailment, we will continue to actively manage the refinery and associated infrastructure. Our port facilities located alongside the refinery will continue to operate to serve our Pinjarra Alumina Refinery.

“We will also continue to manage the residue storage areas.”

The spokesperson added that Alcoa was participating in the public consultation process at Mandogalup and would continue to advocate for compatible land-use planning in areas adjacent to the residue storage areas,

These include “appropriate separation distances between these industrial facilities and residential or sensitive land uses, regardless of the operating status of the Kwinana refinery”.

A Department of Planning, Lands and Heritage spokesperson said Alcoa retained a right to use its landholdings for refinery purposes, potentially until 2066. 

"The Kwinana facility will remain in care and maintenance for the foreseeable future, with port facilities to remain operational to support the company's existing operations in Wagerup and Pinjarra," the spokesperson said. 

The spokepserson said a draft planning scheme for the IP47 area proposed "a mix of land uses that considers a range of factors relevant to the site including, but not limited to, Alcoa’s operations"

"Any final planning framework for the IP47 area, which is located between strategic heavy industrial areas and future residential areas to be planned in accordance with State Planning Policy 4.1 – Industrial Interface," the spokesperon added. 

Submissions for the public consultation process on IP47 close on April 22.