Alumina Refinery Closure in WA Results in Hundreds of Job Losses
Alcoa announced its plan to close Kwinana refinery, citing operating costs, current bauxite grades, market conditions, and the facility’s age as the main reasons for the shutdown. The closure will result in up to 1,000 job losses and uncertainty for the local community.
Alcoa’s decision to curtail production at the refinery, with the eventual closure in 2025, is expected to impact around 800 employees and 250 contractors. The company plans to reduce production in phases until the workforce is down to 250 in the third quarter of 2024, and further reduced to 50 by the third quarter of 2025.
The refinery, which has an annual production capacity of approximately 2.2 million metric tonnes, has been operating at only 80 percent capacity since January 2023. Alcoa reported a net loss of US$130 million (A$194 million) in 2023 and anticipates savings of around US$70 million starting from the third quarter of 2024 through the curtailment.
Alcoa emphasized its commitment to Western Australia and stated it would support impacted workers by helping them transition to other jobs or redeploying them within its business. The company also asserted that alumina production at its Pinjarra and Wagerup refineries would not be affected by the Kwinana curtailment.
Government Disappointed With Alcoa’s Decision
Following Alcoa’s announcement, federal Resources Minister Madeleine King expressed her disappointment with the decision to curtail the Kwinana refinery. She emphasized the need for Alcoa to support impacted workers and their families during the transition period.
WA Premier Roger Cook also expressed disappointment, stating his commitment to working with Alcoa to ensure local jobs in Western Australia are supported into the future.
Meanwhile, Minerals Council of Australia CEO Tania Constable linked the Kwinana closure to energy shortages and government policies, and their impact on the Australian economy and communities.
