The decision to curtail the 60-year-old facility is based on a variety of factors, including its age, scale, operating costs and current bauxite grades, in addition to current market conditions, explained Matt Reed, Alcoa’s recently appointed executive vice president and COO.

The Kwinana refinery posted a net loss (pre-tax and noncontrolling interest) of approximately $130 million in 2023. The refinery will continue to incur approximately $40 million of non-cash depreciation, depletion and amortization expenses while it sits idle.

The company said the curtailment will include a phased reduction of the workforce from around 800 employees at the start of 2024 to approximately 250 in the third quarter of this year, when all alumina production will cease.

The refinery and associated residue storage facilities will continue to be actively managed. Alcoa’s port facilities located alongside the refinery will continue to operate to import raw materials and export alumina produced at the company’s Pinjarra Alumina Refinery. Production at the Pinjarra and Wagerup refineries is not expected to be impacted by the curtailment at Kwinana.