The site was placed into "care and maintenance" mode in November 2012 after more than 600 workers were laid off.

Hydro Aluminium Kurri Kurri's managing director Richard Brown said the company had been preparing for the closure and working on plans for the future of the site.

He said the closure brought opportunity to redevelop the site.

"The smelter was a significant employer in the region and part of the local culture and identity of Kurri Kurri," Mr Brown said.

"The site retains great potential as an important employment centre for the Hunter, due to its size, existing infrastructure and proximity to the Hunter Expressway.

"We also believe portions of the site will be ideal for residential development, close to existing residential areas and in obvious population growth areas.

"We will continue working with government at all levels and with other stakeholders to ensure the land can be re-used for maximum benefit."

Mr Brown stressed it was unlikely any noticeable changes would occur on the site in the next two years.

The decision to cease production in 2012 was based on the overall market situation for aluminium, uncertain outlook and strong Australian dollar.