Ministry of Economy: 48 million tonnes of red mud near Mykolaiv — «a distinct asset of interest» for investors
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The tailings ponds of the Mykolaiv Alumina Plant. Photo: Dari MarchakThe sludge fields of the Mykolaiv Alumina Plant (MAP), where over 48 million tonnes of alumina production waste have accumulated, may be of particular interest to potential investors during the upcoming privatisation of the enterprise.
This was written on Facebook by Daria Marchak, Deputy Minister of Economy of Ukraine, following a visit to the Mykolaiv Alumina Plant.
According to her, during the visit to the plant, they discussed the technical condition of the production facilities, the prospects for resuming the plant’s operations, preparations for privatisation, and environmental issues.
«The «Mars field» in the photo — the MAP sludge fields — require careful and particularly responsible management from the perspective of the region’s environment, but they also represent a distinct and interesting asset for potential investors,» noted Daria Marchak.
These are two MAP sludge storage sites where over 48 million tonnes of red sludge — a by-product of alumina production — has accumulated.
Deputy Minister of Economy Daria Marchak described the MAP sludge fields as a distinct investment asset. Photo: NikVestiShe also emphasised that the Mykolaiv Alumina Plant is one of the largest alumina producers in Europe and has the potential to integrate into European production chains once full-scale operations resume.
«The Mykolaiv Alumina Plant is one of the largest alumina producers in Europe and an asset of strategic importance for critical raw material supply chains. (...) For Ukraine, the Mykolaiv Alumina Plant is an asset with great potential for integration into European production chains once full-scale operations resume,» wrote Daria Marchak.
At the same time, the State Property Fund (SPFU) had previously noted in a comment to NikVesti that the sludge fields are not considered separately from the enterprise and form part of a single property complex, which is planned to be put up for privatisation auction.
«The territory of the two sludge storage sites is part of the company’s single property complex, which is planned to be put up for sale,» the SPFU stated at the time in a comment to NikVesti.
The Fund also noted that the plant’s employees continue to maintain the two sludge storage sites, which hold over 48 million tonnes of sludge. For this purpose, they use wheeled vehicles and a stationary dust suppression system.
It should be recalled that the Mykolaiv Alumina Plant is included in the list of major privatisation assets that the government plans to put up for auction in the fourth quarter of 2026 with a starting price of $86 million. The plant is to be sold together with the sludge storage facilities where alumina production waste is stored.
The Ministry of Economy has stated that the issues of sludge storage facilities and environmental safety will also be taken into account when preparing the terms of privatisation for the Mykolaiv Alumina Plant. In particular, environmental obligations for the future investor are to form part of the privatisation terms, which will be approved by the Cabinet of Ministers. The State Property Fund will be responsible for drafting these terms.
Earlier, the head of the Mykolaiv Regional State Administration, Vitalii Kim, stated that once the war ends, the Mykolaiv Alumina Plant could become one of the first major industrial facilities to attract international investors. According to him, the plant could reorient itself towards European and US markets or serve as the basis for establishing aluminium production.
At the same time, the State Property Fund noted that the main obstacle to the privatisation or restart of the plant remains the risks posed by the war, rather than the company’s debts. This is precisely why Ukraine is seeking a strategic investor, particularly from the US or India.
Currently, one of the world’s largest aluminium companies, whose shares are traded on the New York Stock Exchange, has expressed interest in MAP.
This material was produced within the REACH – Media Partnerships for Accountability and Trust project, implemented by International Media Support (IMS) and supported by the Ministry of Foreign Affairs of Denmark. The content reflects the views of the authors and not necessarily those of the Danish government. Denmark’s support strengthens civil society and independent media in Ukraine, including in Mykolaiv.
