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WA Premier Roger Cook has criticised comments by the head of Alcoa about the possible closure of the US mining giant's Kwinana refinery.
- Alcoa president Bill Oplinger says all options are on the table for the Kwinana alumina operation, including "curtailment and closure"
- Premier Roger Cook says this is disappointing commentary that will create unnecessary uncertainty for workers
- The US company is facing heightened environmental scrutiny, which has led to financial pressure
Alcoa president and chief executive Bill Oplinger last night told Wall Street analysts that all options are on the table for the Kwinana operation, including "curtailment and closure" of the refinery – which makes alumina from the raw material bauxite.
This comes as the US company faces environmental scrutiny and financial pressure, following concerns that its operations could impact Perth's drinking water supplies.
The state's Environmental Protection Authority is considering whether it will for the first time assess Alcoa's mining management plan, with the 2023-2027 edition yet to be approved.
This has forced Alcoa to mine lower grade bauxite ore at previously approved locations, which cost the company about $70 million in the last quarter.
Mr Cook said the company's recent advice was that operations would not cease at the Kwinana refinery, which directly employs 900 people as well as 300 contractors, south of Perth.
He said Mr Oplinger's comments were "disappointing", and created "unnecessary uncertainty for their workforce".
"Local workers deserve better," Mr Cook, who is also the member for Kwinana, said.
"We will continue to work with Alcoa to ensure local jobs are protected and its operations can continue, while maintaining the highest environmental standards."
An Alcoa spokesperson said the company was investigating cost saving measures across its WA operations to improve competitiveness, mitigate the impact of mining lower grade bauxite, and maintain current production levels.
The Kwinana refinery has been running at 80 per cent capacity since January, and the company says it plans to remove about 90 roles by early next year.
"This difficult but necessary step is one of many actions [that] will be implemented with care and respect. Where possible, redeployment and voluntary redundancy will be offered," the spokesperson said.
The company owns two mines in the state's south-west region, as well as two further refineries in Pinjarra and Wagerup, near Waroona.
Waroona Shire president Mike Walmsley said Alcoa is a significant employer in his community, and any changes to the broader business would be felt locally.
"We're certainly interested in it, Alcoa have a huge impact on our local community so anything that affects Alcoa certainly has an effect in our shire," he said.