Alcoa to permanently shut down Kwinana alumina refinery in Western Australia

Core Viewpoint - Alcoa has decided to permanently close its Kwinana alumina refinery in Western Australia due to various operational and market challenges, which will significantly impact its global refining capacity [1][3]. Group 1: Closure Details - The Kwinana refinery has an annual capacity of 2.2 million tonnes, and its closure will reduce Alcoa's global consolidated refining capacity to 11.7 million tonnes [1]. - The closure process will lead to a decrease in employment from approximately 220 people currently employed at the refinery [2]. Group 2: Financial Implications - Alcoa is expected to incur restructuring and related charges of about $890 million, which includes $623 million after-tax, due to the permanent closure [5]. - Cash outlays for the closure are projected to be around $600 million over six years, with $75 million allocated for Q4 2025 [5]. - Additionally, adjustments to asset retirement obligations in Brazil will result in a charge of approximately $50 million after-tax in Q3 2025 [6]. Group 3: Operational Context - The decision to close the Kwinana facility was influenced by factors such as the age of the facility, operating costs, market conditions, and challenges related to bauxite grade [1]. - Alcoa's port and rail facilities at Kwinana will remain operational, along with other significant operations in Western Australia and Victoria [2]. - The company plans to collaborate with the Western Australia State Government on potential future land use options for the site [4].