Alcoa to cut 30% production at Kwinana alumina refinery for natural gas shortage

Alcoa Corporation, the world’s eighth-largest aluminium producer, announced on Monday, January 9, that it expects to cut nearly 30 per cent of production at its partially-owned Kwinana alumina refinery in Western Australia. Shortage of gas supplies is the reason behind the production cut, explained Alcoa.

A unit of the refinery, majorly owned by Alcoa in a joint venture with Alumina Limited, has already been suspended, and the remaining refinery will face slow operational processes, said Alcoa in a statement.

In December 2022, Australia government sought a 12-month price cap on gas and coal prices, but natural gas producers anticipated that might put supply at risk.

Kwinana alumina refinery is currently using diesel to fuel its operations instead of gas, as a result of the shortage.

Alcoa has still not decided the time when it will resume suspended production.