❓ Ms Davies questions the Premier on Alcoa's potential Kwinana refinery closure due to bauxite supply delays. The Premier acknowledges concerns, highlights the refinery's importance, and emphasizes ongoing engagement with Alcoa and the independent EPA process.
AnsweredQoN 790Legislative Assembly
QuestionView source ↗
ALCOA — KWINANA REFINERY
790. Ms M.J. DAVIES to the Premier:
I refer to reports that the new CEO
of Alcoa is considering closing the Kwinana refinery due to an insufficient
supply of bauxite as a result of delays in the government approval process for
its new mine plan.
(1) What action
has the Premier taken to ensure that the refinery remains open and operating,
sustaining the 1 200 direct jobs and up to 6 000 indirect jobs in our state?
(2) When will the
plan be approved so that Alcoa can provide an assurance of ongoing employment
to those thousands who rely on this business for their livelihood?
790. Ms M.J. DAVIES to the Premier:
I refer to reports that the new CEO
of Alcoa is considering closing the Kwinana refinery due to an insufficient
supply of bauxite as a result of delays in the government approval process for
its new mine plan.
(1) What action
has the Premier taken to ensure that the refinery remains open and operating,
sustaining the 1 200 direct jobs and up to 6 000 indirect jobs in our state?
(2) When will the
plan be approved so that Alcoa can provide an assurance of ongoing employment
to those thousands who rely on this business for their livelihood?
AnswerView source ↗
I thank the member for the question.
It is a very good one.
(1)–(2) Obviously,
the comments today from Alcoa's chief executive—I think it was
in Pittsburgh—were disappointing and create unnecessary uncertainty for
the workplace. Since Alcoa's refinery was commissioned in 1963, it has
been a major employer in the Kwinana area in my electorate. It currently employs around 1 200 people at the refinery and
over 4 600 people in WA directly and indirectly. Obviously , any decisions Alcoa makes to curtail operations at
Kwinana would be disappointing for the local workforce , particularly in Kwinana. Alcoa's comments
today that it is considering closing the refinery will mean an uncertain
time for those workers, so our thoughts go out to them. It is very troubling
that it has made those comments.
We expect Alcoa to provide clarity
first and foremost for its workers. It is currently undertaking a mine
management plan, which has been referred to the Environmental Protection
Authority by a third party, and this referral is a matter for the EPA, which is
independent of government. The EPA is currently determining whether to assess
the proposals and, if so, the level of assessment. We will obviously not
interfere in that process. It is an independent process that we expect it to
undertake.
The state government is continuing
to work with Alcoa on its updated mine management plan, as well as modernising
its improvement framework. Alcoa is working in increasingly contested areas of
state forest and other parts of Western Australia as it seeks to make sure that
it has an appropriate blend of different qualities of bauxite for its ongoing
operations. We sincerely hope that it can mitigate the current risks to the
viability of the Kwinana refinery. As the member for Cottesloe will attest, the
technology it uses at Kwinana is, to my
understanding, quite dated and therefore it makes it a more inefficient
refinery compared with, say, the Wagerup refinery. However, it is an important
part of Alcoa's operations and obviously also provides it with export
facilities by way of its exposure to the Kwinana port facilities. I suspect it
is also strategically important for Alcoa.
Someone made the observation recently
that the rehabilitation of that site would be so extensive that Alcoa would probably be better off persisting with
it. I have regular meetings with Alcoa, primarily around its mine
management plan, to make sure that we understand its constraints and
opportunities. We are working closely with
it to try to find a mine management plan that is acceptable to all parties, and
we need to make sure that we do everything we can to provide certainty
and a future for those workers, which is our key concern.
It is a very good one.
(1)–(2) Obviously,
the comments today from Alcoa's chief executive—I think it was
in Pittsburgh—were disappointing and create unnecessary uncertainty for
the workplace. Since Alcoa's refinery was commissioned in 1963, it has
been a major employer in the Kwinana area in my electorate. It currently employs around 1 200 people at the refinery and
over 4 600 people in WA directly and indirectly. Obviously , any decisions Alcoa makes to curtail operations at
Kwinana would be disappointing for the local workforce , particularly in Kwinana. Alcoa's comments
today that it is considering closing the refinery will mean an uncertain
time for those workers, so our thoughts go out to them. It is very troubling
that it has made those comments.
We expect Alcoa to provide clarity
first and foremost for its workers. It is currently undertaking a mine
management plan, which has been referred to the Environmental Protection
Authority by a third party, and this referral is a matter for the EPA, which is
independent of government. The EPA is currently determining whether to assess
the proposals and, if so, the level of assessment. We will obviously not
interfere in that process. It is an independent process that we expect it to
undertake.
The state government is continuing
to work with Alcoa on its updated mine management plan, as well as modernising
its improvement framework. Alcoa is working in increasingly contested areas of
state forest and other parts of Western Australia as it seeks to make sure that
it has an appropriate blend of different qualities of bauxite for its ongoing
operations. We sincerely hope that it can mitigate the current risks to the
viability of the Kwinana refinery. As the member for Cottesloe will attest, the
technology it uses at Kwinana is, to my
understanding, quite dated and therefore it makes it a more inefficient
refinery compared with, say, the Wagerup refinery. However, it is an important
part of Alcoa's operations and obviously also provides it with export
facilities by way of its exposure to the Kwinana port facilities. I suspect it
is also strategically important for Alcoa.
Someone made the observation recently
that the rehabilitation of that site would be so extensive that Alcoa would probably be better off persisting with
it. I have regular meetings with Alcoa, primarily around its mine
management plan, to make sure that we understand its constraints and
opportunities. We are working closely with
it to try to find a mine management plan that is acceptable to all parties, and
we need to make sure that we do everything we can to provide certainty
and a future for those workers, which is our key concern.
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