The State Property Fund believes that red sludge from the Mykolaiv Alumina Plant can be sold abroad

It has been proposed that the red sludge from the Mykolaiv Alumina Plant be sold abroad for processing. Photo: NikVesti, as provided by the State Property Fund

Dmytro Natalukha, Head of the State Property Fund of Ukraine, proposes selling the red sludge that has accumulated at the Mykolaiv Alumina Plant for processing abroad. In his view, this will enable the organisation to generate profit from production waste and gradually reduce the area of the sludge fields.

He spoke about this in an interview with NikVesti.

According to Dmytro Natalukha, the red sludge contains iron, so it can be used to produce iron ore pellets. Furthermore, using certain technologies, other valuable components can be extracted from it, including rare-earth metals.

«Due to logistical problems, it appears that no one is currently removing the sludge. But we have sought advice and discussed this with the company’s management today. The sludge can be utilised and processed, in particular into iron ore pellets, thanks to its high iron content. Using certain technologies, other valuable components can also be extracted, including rare-earth metals. So it’s a mystery to me why, all this time, the slag has simply been piling up rather than being sold to generate revenue,» said Dmytro Natalukha.

He also explained that, prior to the full-scale invasion, MAP had already been considering the possibility of processing the sludge at Ukrainian metallurgical plants. In particular, at the end of 2021, representatives of the plant visited Azovstal in Mariupol, where they discussed potential cooperation.

However, due to the outbreak of full-scale war, these plans could not be realised. Now, according to the head of the State Property Fund, enterprises in neighbouring countries could be sought to process the sludge.

«This does not mean that it is impossible to find steelworks in neighbouring countries. I think this is one way in which we can begin to tackle the environmental problem: by exporting the sludge for sale and thus gradually reducing the area of the sludge storage sites,» he explained.

It should be noted that 49.4 million tonnes of red sludge have accumulated at two sludge storage sites belonging to the Mykolaiv Alumina Plant. In May 2026, the State Environmental Inspectorate reported that the dust suppression system at the plant was operating at only 70 per cent capacity. Due to equipment damage and maintenance issues, instances of dust emissions have been repeatedly recorded at the sludge storage sites.

In particular, on 26 April 2026, strong winds began to scatter red sludge from the plant’s sludge storage facilities across the outskirts of Mykolaiv. Subsequently, the regional military administration reported that the situation had been brought under control.

Earlier, the head of the Mykolaiv Regional Military Administration, Vitalii Kim, stated that samples of sludge had been sent to South Korea to assess the possibility of using it for road repairs. However, he did not specify whether this referred specifically to the red sludge from the Mykolaiv Alumina Plant.

Furthermore, Dariia Marchak, Ukraine’s Deputy Minister of Economy, described the sludge fields at the Mykolaiv Alumina Plant as a distinct and attractive asset for potential investors. Following a visit to the plant, she noted that the accumulated waste requires special attention from an environmental safety perspective, but at the same time may be of commercial interest during the forthcoming privatisation of the Mykolaiv Alumina Plant.

NikVesti also reported that the State Property Fund has yet to decide whether to sell the sludge storage facilities alongside the Mykolaiv Alumina Plant. A final decision on this matter is expected by the end of October.