Alcoa chief executive Bill Oplinger told Wall Street the US aluminium specialist could take strong action to boost profits from alumina, most of which it refines in Western Australia.
South West WA's power grid reached a record 91 per cent peak renewable energy share in December - driven by 1,225 MW of new battery storage - while wholesale power prices fell 13 per cent and carbon emissions dropped 15 per cent as coal and gas generation declined.
The green light for Black Mountain Energy comes just months after Federal experts said its environmental risk assessment was "limited and disjointed" and reached "largely unsupported" conclusions.
Alcoa flags 'pretty aggressive' cost cuts at alumina refineries
Alcoa chief executive Bill Oplinger told Wall Street the US aluminium specialist could take strong action to boost profits from alumina, most of which it refines in Western Australia.
Alcoa chief executive Bill Oplinger has signalled a cost-cutting drive at the company's alumina refineries, which Western Australia - home to the majority of production - would be unlikely to escape.
The price the Pittsburgh-based company received for the aluminium smelter feedstock dropped 12 per cent in 2024, cutting earnings from its alumina division by a third.
🔢
KEY NUMBERS - Alcoa 2025
Profit - $US1,170 million, ⬆️ from $US60 million in 2024 Revenue - ⬆️ 8% to $US12.8 billion Bauxite - 25.8 million tonnes mined in WA, ⬇️ 7% Alumina - production ⬇️ 4% (mainly the Kwinana closure) - price ⬇️ 12% - adjusted EBITDA ⬇️ 36% to $US901 million Aluminium - production ⬆️ 4% (due to smelter restarts) - price ⬆️ 19% - adjusted EBITDA ⬆️ 61% to $US1058 million
Alcoa's WA refineries, Pinjarra, Wagerup and Kwinana, which closed in 2024, typically produce more than 70 per cent of the company's alumina.
When queried by Wall Street analysts last week on plans to cut costs and boost efficiency at Alcoa's refineries, Oplinger said that he understood where his alumina division was in the commodity cycle.
'We've shown in the past ... that we can get pretty aggressive around costs," Olplinger said.
However, Oplinger indicated that at least one of his predecessors had gone too far in response to previous low prices.
"What we won't do this time around is really put any of our plants in jeopardy for the future," he said.
Alcoa's WA operations - the Huntly mine that feeds the Pinjarra refinery and the Willowdale mine that supplies the Wagerup refinery further south - employs about 4000 people.
Low prices hit Alcoa's alumina refineries
Olpinger was speaking after the $22 billion company released its 2025 financial results that showed a falling financial performance of its alumina business countered by a much better year from its aluminium smelters.
The global benchmark price for alumina - set by WA production - plunged in early 2025. Source: Alcoa Q4 2024 presentation
The global prices index for alumina which is based on WA production from Alcoa and South32 fell heavily in the first four months of 2025.
Oplinger said the Chinese government had discouragred large-scale curtailment of production at its refineries despite about 60 per cent of them having difficulties at current pricing.
"Alcoa is exceptionally well positioned to navigate market volatility, thanks to our low-cost mining and refining portfolio and our strong operational performance," Oplinger said.
All of Alcoa's refineries are in the lowest 25 per cent of global production costs.
All of Alcoa's alumina refineries - including Pinjarra and Wagerup in WA - have low production costs. Source: Alcoa Q4 2024 presentation
He praised his teams at WA's Pinjarra and Wagerup alumina refineries for continuing to increase production despite the low bauxite grade Alcoa is currently mining in WA until it gains environmental approval to clear new swathes of jarrah forest.
Mining accounted for only a quarter of Alcoa's alumina production costs in Q4 2025. Source: Alcoa Q4 2024 presentation
The low grade of bauxite in WA means to produce a tonne of alumina Alcoa needs more ore, more caustic, and more natural gas.
WA approvals or bust for Alcoa
WA's Environmental Protection Authority (EPA) is assessing Alcoa's current mining and a planned expansion of the Huntly mine that is increasingly encroaching of the water catchments that supply Perth.
In January Alcoa provided responses to the EPA to the almost 60,000 submissions the independent watchdog received.
Oplinger said he expected the EPA to publish its recommendations by mid-year and for Alcoa to receive the go-ahead from WA and Federal environment ministers by December.
Read Boilng Cold's breakthrough revelations on how the WA government is doing all it can to put Alcoa before WA's forests and water supply.
Alcoa is betting everything on getting those approvals to continue its six decades of mining WA's jarrah forest that accounts for more than 70 per cent of its bauxite and alumina production.
Oplinger said Alcoa had no plans to develop new mines or refineries.
"Refining capital costs are still fairly high and certainly, at today's prices, it makes it difficult for a greenfield expansion."
However he said Alcoa has opportunities for "brownfield" expansiion of existing mines, refineries and smelters.
I worked in oil & gas in commercial and engineering roles for 20 years. Since 2016, I have written for The West Australian, WAtoday, The Guardian and Boiling Cold, winning five WA Media Awards.
If the US miner is found to have mined too close to a large jarrah tree, it would trigger an automatic cancellation of its right to mine much of its lease.
The US miner's extraction of bauxite near Perth is facing significant public scrutiny for the first time, and many are resisting what is happening to their beloved jarrah forest.
Peter Milne
