EXCLUSIVE: Devastating Blow to WA Economy as Alcoa Confirms Permanent Closure of Kwinana Alumina Refinery
- Alcoa’s Kwinana Alumina Refinery to shut down permanently after 60 years of operation
- 800 jobs to be lost, with 220 employees remaining to prepare site for future redevelopment
- Closure expected to cut $650 million from WA economy per year, sparking fears for the state’s economic future
Alcoa, the US aluminium giant, has dealt a devastating blow to Western Australia’s economy, confirming the permanent closure of its Kwinana Alumina Refinery. The move comes after the company wound down production at the facility in January 2024, citing the site’s age, operating costs, and market conditions.
In a statement, Alcoa’s chief operations officer Matt Reed said the company had “unsuccessfully explored multiple options for a sustainable path to restarting” the refinery. “Alcoa operated the Kwinana refinery for a number of years in a challenging environment and made the difficult decision to permanently close the facility,” he said.
The refinery’s closure is expected to have a significant impact on the local community, with around 1,000 jobs to be lost. The Kwinana Industries Council described the closure as the “end of an era”, but said new investments in areas such as renewables, critical minerals, and advanced manufacturing would ensure the Kwinana Industrial Area remains a hub of activity.
Nationals WA leader Shane Love was quick to criticise the state government, saying the closure was a “devastating blow” for the state’s workers and economy. “The Cook Labor government will try to spin this as a ‘future redevelopment opportunity’ but the reality is it represents the loss of a major industrial asset on their watch,” he said.
The closure of the refinery is the latest blow to Western Australia’s economy, which has been struggling in recent years. The state’s Environmental Protection Authority is currently assessing Alcoa’s proposals to expand its mining operations in the world’s only jarrah forests.
Alcoa said the refinery’s remaining workforce of around 220 employees would continue to be phased out, with some staff remaining beyond 2026 to prepare the site for future redevelopment. The company will spend approximately $US890 million ($1.4 billion) on “restructuring and related charges” in the third quarter of 2025, and an additional $US600 million over the next six years on costs related to the closure.
The Kwinana Alumina Refinery has operated for more than 60 years, and its closure marks the end of an era for the local community. As the state government and local leaders look to the future, one thing is clear: the closure of the refinery will have far-reaching consequences for Western Australia’s economy.