Alcoa has announced a review of its global aluminium smelting business, casting another cloud over the future of 600 workers at its Geelong plant.
Alcoa said the review over the next 15 months would focus on higher-cost plants exposed to risks such as rising energy costs or regulatory uncertainty.
The review follows a 33 per cent fall in aluminium prices since their peak in 2011.
Alcoa said last year it could only guarantee its future in Geelong until the middle of 2014.
Alcoa global primary products manager Chris Ayres the review would consider all options.
“Any action taken will only be done after a thorough strategic review and consultations with stakeholders,” Mr Ayres said.
He confirmed the outcomes could include closing smelters.
The review follows a Gillard Government bailout package of $42 million last year to keep Alcoa in Geelong at Point Henry.
Local federal Liberal candidate Sarah Henderson used the Alcoa announcement to call for the Government to scrap the carbon tax, with electricity a major cost to the operation of the smelter.
“The carbon tax is a tax on Geelong and a tax on jobs,” she said.
Alcoa has previously downplayed the impact of the carbon tax on its operations in Australia.
