The State Property Fund still does not know whether the sludge fields will be sold together with the Mykolaiv Alumina Plant

The State Property Fund is unsure whether the sludge ponds will be sold alongside the Mykolaiv Alumina Plant; photo from the archive NikVesti

The State Property Fund is still unsure whether to sell the Mykolaiv Alumina Plant’s sludge storage facilities alongside the plant itself. Although back in March they reported that both sites were part of the property complex to be put up for auction, this issue is now being discussed again with the Ministry of Economy. The final decision on the «package» is to be taken by the Cabinet of Ministers.

Dmytro Natalukha, head of the State Property Fund, spoke about this in an interview with NikVesti.

When asked whether the sludge fields would be included in the privatisation package or sold separately, he replied:

«We are currently in talks with the Ministry of Economy, which is set to be one of the key players in the government’s decision on the auction terms,» said Dmytro Natalukha.

When asked whether the issue remained unresolved, he noted: «It’s in progress. I think we’ll have a clear answer by the end of October.»

Meanwhile, in March 2026, the State Property Fund stated in a comment to NikVesti that the plant would be sold together with the sludge storage facilities.

«The area of the two sludge storage facilities forms part of the company’s single property complex, which is planned to be put up for sale,» the Fund’s response stated.

Subsequently, in May, Deputy Minister of Economy Daria Marchak, following a visit to the plant, described the accumulated sludge as «a separate asset of interest» to potential investors. At the same time, she emphasised that the sludge fields require a particularly responsible approach, given the region’s environmental conditions.

During an interview, Dmytro Natalukha was also asked whether, following privatisation, the sludge storage sites might remain under the responsibility of local or regional authorities. He did not give a definitive answer.

«To be honest, I don’t know if there is such a risk. I need to check exactly what HACC has transferred to us and whether these sludge fields are included in the list of assets within the property complex,» replied the Fund’s chairman.

He added that he regards the accumulated sludge as a potential source of profit through its processing and sale.

The issue of maintaining the sludge storage facilities remains important regardless of whether production at the plant resumes. In May, the State Environmental Inspectorate reported an accumulation of 49.4 million tonnes of red sludge and that the dust suppression system was operating at approximately 70 per cent capacity.

According to environmentalists, 16 incidents of dust emissions from sludge reservoir №2 were recorded between 2023 and 2025, and on 26 April 2026, there was an uncontrolled dust emission from sludge reservoir №1. Environmentalists also warned of the risks of slurry water entering the Buh Estuary and contaminating neighbouring agricultural land.

According to Natalukha, during his visit in early October, the irrigation system was operational and there was no dust emission. However, he clarified that he was not in a position to assess its day-to-day operation.

«What we saw was that the irrigation system is working, the fields are being irrigated, and there is no dust. I cannot say how this happens on a daily basis,» he said.

As a reminder, the Mykolaiv Alumina Plant is scheduled to be put up for privatisation auction in the first quarter of 2027. The final date, starting price and composition of the asset package are to be approved by the Cabinet of Ministers.