The future of Point Henry aluminium smelter and its 600 workers to be decided soon

Some 600 Victorian Alcoa workers will soon learn if they still have jobs, with the federal government saying it expects to finish talks soon with the company about the future of its Point Henry aluminium smelter.

Federal Industry and Innovation Minister Greg Combet said the government wanted to conclude discussions with the company in the "very near future".

Mr Combet said the long-term viability of the smelter depended on the projected value of the Australian dollar, world aluminium prices and state government electricity subsidies.

"We are obviously extremely concerned about the future of the smelter and the 600 workers whose futures, their jobs, depend upon the viability of the smelter, plus their families plus other businesses and the jobs that are associated with the smelter indirectly in Geelong," he told reporters in Canberra.

The government is expected to announce an assistance package of $42 million to Alcoa in the coming days, according to The Australian Financial Review. Opposition Leader Tony Abbott said the Point Henry smelter would be the first of many to be bailed out as a consequence of the federal government's carbon tax.

Mr Combet said Alcoa's difficulties had nothing to do with the carbon tax.

"They have everything to do with the high value of the Australian dollar and low aluminium prices."

Victoria's Regional Cities Minister Denis Napthine said the state government already provided enormous assistance to Alcoa including electricity subsidies. Dr Napthine said the state government was looking at direct assistance for Alcoa but also to the broader manufacturing supply chain.

State opposition employment spokesman Tim Pallas welcomed a government Alcoa assistance package.

"It is important both state and federal governments work hand in hand to make sure these jobs are protected," he told reporters.