Atlantic Alumina, also known as Atalco, has come under regulatory scrutiny following reports of red mud discharges from its Gramercy refinery in Louisiana. The refinery is the only alumina refinery left in the United States, producing aluminium oxide from bauxite.
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The site relies on giant manmade lakes to store a caustic red mud slurry, a by-product of the refining process. Last year, breaches in these levees reportedly allowed materials containing trace levels of arsenic, cadmium, chromium and other heavy metals to escape into surrounding drainage systems.
State action and compliance pressure
In August, the Louisiana Department of Environmental Quality (LDEQ) issued a “Notice of Potential Penalty” outlining multiple compliance concerns. Inspectors first spotted the leaks more than a year ago, later confirmed in a 606-page inspection report. The slurry had carved channels through levees, flowing into the public drainage system that reaches Blind River Swamp and Lake Maurepas.
Atalco must now meet new permit renewal conditions. This includes detailed drainage maps, improved levee inspection protocols, and engineering assessments to address future risks. The company has 60 days from 17 September to respond.
The most recent notice, dated 22 August, details repeated incidents. “On or about May 29, 2025, inspectors from the department observed four (4) erosion channels or breaches along the … levees near Outfall 003, where reddish-orange caustic material/liquor was seeping into the receiving ditch for Outfall 003,” the notice stated.
The notice further stated that “additionally, the Department observed several of the receiving streams within the Blind River Swamp further downstream from the facility’s outfalls to be turbid, objectionable in color (reddish-orange), and have a caustic odour.”
Subsequent inspections on 11 June revealed further off-site discharges, including a “stagnant red pool” in marshland.
Atalco has pledged to comply. “Respondent will develop a Red Mud Lakes Integrity and Operational Workplan,” it wrote.
The firm attached images of ongoing levee repairs and mitigation works. LDEQ’s notice allows for fines of up to USD 32,500 per violation per day, though historically the agency has issued lower penalties, as in a USD 75,000 settlement in 2017 for 78 air violations.
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