Alcoa confirms permanent shutdown of Kwinana refinery
Alcoa has announced there is no sustainable path to restarting the Kwinana alumina refinery in Western Australia after winding down production. The decision marks the end of an era for a facility that has operated in the WA region for more than six decades and follows a formal review of the refinery’s future, including restart and closure options.
Work on winding down began in January 2024, with the workforce shrinking from about 800 to roughly 220 as the company shifted to a reduced-operations mode while continuing to run other WA facilities. While most roles will be phased out, a portion of staff will remain beyond 2026 to support site redevelopment planning and any future opportunities for the location.
Why the refinery won’t restart
Company officials cited the refinery’s age, ongoing operating costs, and challenging market conditions as the key drivers behind the decision. The conclusion was described as a commercial one, reflecting the absence of a viable path to restart that would be financially sustainable for Alcoa and its Western Australian operations.
Despite the closure, Alcoa emphasized its ongoing commitment to WA by continuing to operate two large refineries in the state. The Kwinana decision also comes as WA’s energy-intensive refining portfolio undergoes adjustment, with the company’s global refining capacity having declined from 13.9 million tonnes to about 11.7 million tonnes following the closure of Kwinana.
Costs, commitments and the broader economic picture
Alcoa has disclosed that restructuring and related charges are projected at roughly US$890 million (about A$1.4 billion) in the third quarter of 2025, with an additional US$600 million anticipated over the next six years to cover closure-related costs. The company notes that Kwinana accounted for around 16% of its global refining capacity, a share that will be redirected toward other WA assets and future opportunities.
Analysts have warned of wider economic implications for Western Australia. Independent experts estimated that winding down the Kwinana refinery could shave roughly A$650 million from the state’s economy each year, underscoring that the closure reverberates beyond the facility itself and affects regional employment and supplier networks.
Workforce transition and future planning
Alcoa says the majority of workers will be phased out gradually as the company transitions away from Kwinana while safeguarding operations at its other WA refineries. A portion of roles will endure past 2026 to oversee decommissioning, site remediation, and potential redevelopment planning—efforts aimed at shaping a new future for the site and its workforce.
Context for Kwinana and the road ahead
The Kwinana industrial precinct has long been a backbone of Western Australia’s energy-intensive sectors. The Kwinana Industries Council called the closure the end of an era, while urging fresh thinking and nimble decision-making to adapt to import competition and domestic regulatory hurdles. At the same time, council officials stressed that the region could pivot toward investments in renewables, critical minerals, batteries, defence industries, and advanced manufacturing to keep the area a hub of activity.
Regulatory and environmental backdrop
The announcement comes amid a broader regulatory review as Western Australia’s Environmental Protection Authority assesses Alcoa’s proposals to expand mining operations within nearby jarrah forests. The outcome of this review could influence future investment and the pace of new projects in the Kwinana area and the wider industrial precinct.
