Alcoa has announced it will permanently close its Kwinana alumina refinery in Western Australia.
The decision to close was made after considering the age of the facility, scale and operating costs, market conditions and bauxite grade challenges.
“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,” said Alcoa Executive Vice President and Chief Operations Officer, Matt Reed.
“We appreciate the dedication and support of our Kwinana employees, contractors and suppliers who have made a major contribution to Western Australia’s economic development and prosperity over more than six decades.”
Alcoa will spend $890 million USD (approx. $1.4 billion AUD) on restructuring and related charges during the third quarter of 2025, including $375 million USD (approx. $568 million AUD) of non-cash asset impairment charges.
Kwinana currently has 220 employees, but this number will be reduced during 2026 as the closure progresses, while some employees will remain to prepare the site for redevelopment.
In a statement, Nationals WA Leader, Shane Love, said the Kwinana refinery closure is not only an economic hit but also a deep loss to the community’s identity after operating for more than 60 years.
Closing the Kwinana refinery’s 2.2 million tonnes of annual capacity will bring Alcoa’s global refining capacity to 11.7 million tonnes.
Cash outlays in relation to the closure are expected to approximate $600 million USD (approx. 910 million AUD) over the next six years.
Restructuring costs of $45 million USD (approx. $68 million AUD) and asset retirement obligations of $30 million USD (approx. $45 million AUD) will be paid by Alcoa in the fourth quarter of 2025.
Asset retirement obligations and environmental reserves will increase to $260 million USD (approx. $394 AUD) for Alcoa in 2025 to spend on Kwinana’s closure and to $300 million USD (approx. $455 million AUD) in 2026.
Alcoa’s third quarter 2025 operational tax expense will cost $100 million USD (approx. $151 million AUD), an increase of $30 million USD (approx. $45 million AUD) from last year because of the restructuring change for Kwinana’s closure.
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