Alcoa Corporation has announced it will permanently close its Kwinana alumina refinery in Western Australia, following more than a year of curtailed operations.
The company said the decision comes after extensive studies on options for the refinery, including restart and closure. Factors influencing the outcome included the age of the facility, operating scale and costs, market conditions, and challenges related to bauxite grades.
“Alcoa operated the Kwinana refinery for a number of years in a challenging environment and today made the difficult decision to permanently close the facility after unsuccessfully exploring multiple options for a sustainable path to restarting,” said Matt Reed, Executive Vice President and Chief Operations Officer.
According to the ASX-listed company,the refinery, which has been in operation for over six decades, employs about 220 people.
It noted that employee numbers will be reduced during 2026 as the closure progresses, with some remaining beyond that period to prepare the site for redevelopment.
Alcoa also noted that severance costs for affected employees were previously recorded in the first quarter of 2024.
The company said it will work with stakeholders to ensure a safe and responsible closure of the refinery and associated residue storage areas.
Alcoa said it intends to collaborate with the Western Australian Government on potential land use options and to prepare the site for new economic opportunities.
The company’s port and rail facilities at Kwinana will continue operating, alongside Alcoa’s other operations in Western Australia and Victoria.
As part of the closure, Alcoa said it expects to record restructuring and related charges of about $890 million in the third quarter of 2025, including $375 million in non-cash asset impairment charges.
Cash outlays are estimated at approximately $600 million over the next six years, with about $75 million to be spent in the fourth quarter of 2025.
Alcoa said potential future proceeds from redevelopment of the refinery site are not included in current estimates but are expected to offset a significant portion of closure costs.
It noted that the permanent closure will remove Kwinana’s 2.2 million metric tons of annual capacity, reducing Alcoa’s global consolidated refining capacity to 11.7 million metric tons.
Alcoa also updated its financial outlook, noting that third quarter 2025 operational tax expense is expected to be about $100 million, an increase of $30 million from earlier estimates due to the restructuring charge. The company added that fourth quarter tax expense will be lower as a result.
The content of this article is based on information supplied by Alcoa Corporation. For more information, please refer to the official company announcement and communications from Alcoa. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.
