The projects could have created up to 20,000 new jobs.
Hunter Business Chamber CEO Peter Shinnick says it is disastrous.
“They’re going to maintain their current plant but eventually they will close,” he said.
“This is tragic news for the Hunter.”
The Australian Aluminium Council’s Executive Director, Miles Prosser is worried future investment will be forced offshore.
“Imposing costs on Australian producers that aren’t imposed on producers elsewhere in the world basically puts us at a disadvantage and that potentially compromises future investment,” he said.
Mr Prosser says exemptions are needed to ensure the aluminium sector survives.