Alcoa revealed plans to close the Kwinana Alumina Refinery in Western Australia, causing up to 1,000 job losses. The U.S.-based company cited operating costs, current bauxite grades, market conditions, and the facility’s age as the main reasons for the closure, to occur in 2025.
The impact of the decision is significant for local workers and the community. Starting in the second quarter of 2024, the curtailment will affect around 800 employees and 250 contractors. However, some processes will continue until the third quarter of 2025, when production stops and the workforce is further reduced to 50.
The Kwinana refinery has been operating at 80 percent capacity since January 2023 and incurred a net loss of US$130 million in 2023. Alcoa anticipates saving around US$70 million by curtailing operations.
Alcoa pledged to support affected workers by helping them transition to other jobs or redeploying them within the company. The company remains committed to Western Australia and will continue to explore options for the refinery. Additionally, alumina production at Alcoa’s Pinjarra and Wagerup refineries will not be affected by the curtailment at Kwinana.
Following the announcement, federal Resources Minister Madeleine King expressed disappointment and expected the company to support impacted workers. WA Premier Roger Cook also conveyed disappointment and urged Alcoa to provide assistance to its workforce.
Minerals Council of Australia CEO Tania Constable attributed the Kwinana closure to energy shortages and government policies, expressing concern over the impact on the Australian economy and communities.