Queensland Alumina Limited (QAL) confirmed jobs will be cut at its plant in Gladstone.
Low global prices and the high Australian dollar have been blamed for the job losses at the 40 year old refinery.
In a statement announcing the cuts, QAL chairman Armando Torres took a swipe at 'new taxes' for the pressure facing the aluminium industry.
"The aluminium structure in Australia is facing extremely difficult market conditions due to a high exchange rate, higher costs of production, low metal process and new taxes," Torres said.
While the company would not comment on how many jobs would be lost, it said that frontline roles were safe.
The Observer reports the job cuts will be a blow to community morale in QLD’s central region as QAL has been a major source of employment for more than four decades.
The aluminium industry has faced a tough year in Australia with both Rio Tinto and Norsk Hydro cutting jobs at its refineries.
Image: The Observer