ALCOA to Permanently Close Kwinana Alumina Refinery in Australia

Alcoa Corporation has confirmed the permanent closure of its Kwinana alumina refinery in Western Australia, marking the end of operations at one of the country’s oldest alumina facilities. The site, with an annual capacity of 2.2 million tonnes, will be gradually decommissioned after decades of service to the global aluminum supply chain.

The company cited aging infrastructure, high operating costs, and challenges with ore quality as the key reasons for the shutdown. Alcoa expects to record a one-time charge of approximately $890 million in the third quarter of 2025 related to the closure.

Following the decision, Alcoa’s global refining capacity will fall to about 11.7 million tonnes per year, tightening its alumina footprint at a time of shifting market dynamics.

While refining operations will cease, around 220 employees will remain through 2026 to manage site closure activities and prepare the facility for potential future redevelopment.

The Kwinana refinery, operational since the early 1960s, has long been an industrial landmark in Western Australia’s Kwinana Industrial Area. Its closure underscores both the structural pressures in the alumina sector and the industry’s ongoing transition amid decarbonization demands and cost competitiveness.

“This is a difficult but necessary decision to ensure the long-term sustainability of our portfolio,” Alcoa said in its announcement.

Market Implications

The move may tighten regional alumina supply and alter trade flows in the Pacific market. Analysts suggest the closure could lend support to alumina prices in the medium term, while also sparking discussions about the role of lower-cost and lower-emission producers in the global aluminum value chain.