Alcoa will close its coal mine and power station on Victoria's coast in August, putting 85 people out of work.

The power station supplied about 40 per cent of the power for Alcoa's aluminium smelter at Point Henry until it closed last year.

Since then, Alcoa has tried to sell off the mine and station, but has not found a buyer.

Alcoa's aluminium rolling mill at Point Henry operated for more than 50 years. 

The company put $5 million into the Geelong Regional Innovation and Investment fund after closing the operation at Point Henry last year, hoping to help create jobs as it removed a major source of employment from the region.

“We look forward to the fund continuing to create new employment operations,” Alan Cransberg, the managing director of Alcoa of Australia said.

Australian Workers Union (AWU) spokesperson Ben Davis has told the ABC that it is a sad day for the local workforce.

“It's a terribly sad day for them. I think there will be very mixed emotions at Anglesea,” he told reporters.

“In the midst of those who are happy to see the place go, and I get that and I respect their view, I ask them to take a minute just to think of the people who today are having their lives changed.”

Surf Coast Shire Mayor Margo Smith said she is glad to see the large industrial facilities close.

“I just think that it just goes to show that in this time, in this age, you wouldn't have a power station and a coal mine so close to a coastal area like this,” she said.

“I'd like to see a conversation start to happen between state government, local government of course and the residents and the community about what happens in that location,” Cr Smith said.

Alcoa has an obligation to the State Government to rehabilitate the site.