Production at Alcoa’s Kwinana alumina refinery in WA will be fully curtailed in 2024, with the process set to begin in the second quarter of this year.
According to Alcoa executive vice president and chief operations officer Matt Reed, the decision has been based on a number of factors, including the age, scale, operating costs and bauxite grades of the refinery.
“Today’s curtailment decision comes only after thorough and careful deliberation, and we acknowledge that this action will impact workers, business partners, and the community,” Reed said.
“We deeply appreciate the commitment and support of our many loyal employees, contractors, and suppliers at our Kwinana refinery, which has made a major contribution to Western Australia’s economic development over the last 60 years of continual operation.”
The refinery currently employees approximately 800 people. Alcoa will reduce this workforce to 250 in the third quarter of this year and again to 50 in the third quarter of 2025.
The Western Australian Government has announced that the Rockingham Jobs and Skills Centre is ready to work with Alcoa to match staff with employers in Kwinana and the surrounding areas.
“Today will be a difficult day for workers in my local community of Kwinana,” WA Premier Roger Cook said. “(The WA) Government will step up to provide supports for local workers to retrain, reskill and look for new career opportunities in the local area.
“We will continue to work with Alcoa to ensure its other operations in Western Australia – including its Pinjarra and Wagerup refineries – support local jobs into the future.”
Federal Minister for Resources Madeleine King said that she will be sad to see a minerals refinery cease production.
“The Australian Government has classified high purity alumina as a critical mineral and aluminium as a strategic material,” she said.
“I have been assured by Alcoa that the curtailment of production at the Kwinana refinery will not affect the broader supply chain of alumina, which is essential for our future transition towards net-zero emissions.”
Alcoa said the refinery recorded a net loss of approximately $US130 million in 2023, with the facility expected to incur approximately $US40 million of non-cash depreciation, depletion and amortisation expenses while curtailed.
The refinery will remain on care and maintenance for the foreseeable future.
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