 has confirmed its $1.36b (US$890m) plan to permanently close its Kwinana alumina refinery in WA, citing the age of the facility, scale and operating costs, market conditions and bauxite grade challenges.){kind=link}
Alcoa permanently closes Kwinana refinery
Alcoa (ASX: AAI) has confirmed a $1.36b (US$890m) plan to permanently close its Kwinana alumina refinery in WA, citing the age of the facility, scale and operating costs, market conditions and bauxite grade challenges.
This follows the curtailment of production at the refinery in June 2024.
The Kwinana refinery currently has about 220 employees. Alcoa says this number will be reduced during 2026 as the closure progresses. Certain employees will remain beyond 2026 to prepare the site for future redevelopment.
Permanently closing Kwinana’s 2.2mmt of annual capacity will bring Alcoa’s global consolidated refining capacity to 11.7mmt.
Alcoa has undertaken numerous studies and analyses since curtailment to determine the future of the refinery, including restart and closure.
Alcoa executive vice president and chief operations officer Matt Reed comments on the closure.
“Alcoa operated the Kwinana refinery for a number of years in a challenging environment and made the difficult decision to permanently close the facility after unsuccessfully exploring multiple options for a sustainable path to restarting,” he said.
“We appreciate the dedication and support of our Kwinana employees, contractors and suppliers who have made a major contribution to WA’s economic development and prosperity over more than six decades.”
In Q3 CY25, Alcoa will record restructuring and related charges of $1.36b (US$890m) related to the permanent closure, including about $570m (US$375m) of non-cash asset impairment charges.