Multiple factors have driven Alcoa’s decision to permanently close its Kwinana refinery.

Alcoa Corporation recently announced that it will permanently close its Kwinana alumina refinery in Western Australia, removing 10% of Australian alumina capacity. This follows a decision in January 2024 to curtail smelter-grade and non-met alumina production at the refinery from June 2024. The permanent closure of Kwinana’s 2.2Mtpy capacity will bring Alcoa’s global consolidated refining capacity to 11.7Mtpy.

The company reported that it had undertaken numerous studies since curtailing output at the refinery to determine the future of the refinery. Factors such as the age of the facility, scale, and operating costs, market conditions and challenges related to bauxite grade, had all contributed to the decision to ultimately close the refinery.

Kwinana was Alcoa’s first alumina refinery in Australia and has operated since 1963. The refinery had a workforce of around 800 employees before production was curtailed in June 2024. The site currently employs around 230 people, and this number is expected to decrease as the closure progresses. Meanwhile, the associated port and rail facilities at the site will continue to operate, as will Alcoa’s other Western Australian and Victorian operations.

The company stated that it would spend approximately US$890M on "restructuring and related charges" in the third quarter of 2025, and an additional US$600M over the next six years on costs related to the closure. Alcoa will prepare the site for new economic development opportunities, and as part of this, the company will work with the Western Australian State Government on potential future land use options.

The closure of Kwinana had already been factored into Project Blue’s alumina and aluminium production numbers, given Alcoa’s announcement back in 2024, with no impact to our current balance.