As Alcoa begins the curtailing process of its Kwinana alumina refinery in WA, questions remain as to how the WA economy and job landscape will be impacted.
First announced on Tuesday, January 9 by Alcoa, the curtailing of the refinery will happen in stages, with the workforce being reduced from 800 people to 250 in the third quarter of this year, and again to 50 in the third quarter of 2025.
But the 800 employees will not be the only ones affected. The Kwinana refinery also employs approximately 250 contractors, bringing the number of job reductions up above 1000.
“As the local member representing many of the workers at Alcoa Kwinana, I am extremely disappointed and my thoughts are with those workers and their families as they are the people most severely affected by this decision,” Federal Resources Minister Madeleine King said on Tuesday.
“We understand that Alcoa is faced with difficult considerations, including the age of the facility, a constrained location and challenging market conditions, however, the closure of such a longstanding operation is disheartening for everyone involved.”
The alumina refinery has been a staple of the Kwinana landscape for over 60 years. With over six decades of operation under its belt, it is expected that the cut to WA’s economy will also be significant.
“Western Australia overall is one of the largest export contributors in the world when it comes to aluminium,” Bankwest Curtin Economics Centre director Alan Duncan told the ABC.
“The medium- or longer-term impact depends upon the degree to which those workers who are losing jobs at Alcoa are able to be redeployed either within Kwinana in other industry sectors, or in the aluminium and bauxite sector in other regions of Western Australia.”
Experts estimate that the closure could cut approximately $650 million from WA’s economy each year.
The closure may have sustainability impacts as well. Alumina is classified as a critical mineral by the Australian Government, used primarily in the automotive and aerospace sector and as an important component of lithium-ion batteries.
“As the Australian Minister for Resources, it is also very disappointing to see a minerals refinery cease production,” King said.
“However, it is important to note that this decision by Alcoa does not affect Australia’s or Western Australia’s sovereign capacity in alumina production, as Alcoa will continue operations at both the Wagerup and Pinjarra refineries.
“I have been assured by Alcoa that the curtailment of production at the Kwinana refinery will not affect the broader supply chain of alumina, which is essential for our future transition towards net-zero emissions.”
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