Louisiana still has not fined the company linked to red-mud pollution from a Gramercy alumina refinery, even though regulators first recorded the waste entering public waterways in mid-2024, the Louisiana Illuminator reported.
A May 26 inspection found new indications that waste was continuing to leave the property while settlement discussions carried on outside public view.
What happened?
Atalco, the operating name of Atlantic Alumina, has received 23 citations tied to its Gramercy refinery, yet the Louisiana Department of Environmental Quality has not issued a penalty over the red-mud leaks.
The issue goes back to mid-2024, when inspectors said waste had worn away containment levees and entered public ditches that run toward the Blind River swamp, which is connected to Lake Maurepas, the Louisiana Illuminator reported. Later testing found elevated amounts of arsenic, cadmium, chromium, and other heavy metals in nearby soil and water.
During a May 26 inspection, officials found that four previously identified levee breaches had been repaired, but another break first documented in June 2025 had still not been fixed. Inspectors also wrote that unpermitted waste was "sloughing off into a wooded area beyond the fence," and site photos showed discolored water in drainage ditches.
A citizen suit filed by the Louisiana Environmental Action Network is also pending. But U.S. District Court Judge Anna St. John ruled that the case must remain on hold while LDEQ continues settlement negotiations with Atalco through at least Oct. 13.
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Why does it matter?
Red mud is the waste left behind when bauxite is refined into alumina, and it can contain corrosive chemicals and toxic metals. In this case, inspectors said the material reached public drainage systems and nearby wetlands.
LDEQ has the authority to impose penalties from $100 to $32,500 per violation, but the agency has often settled with Atalco for much less. The outlet reported that after inspectors identified 78 violations in 2017, the company agreed to pay $75,000 and was still allowed to deny wrongdoing.
The Gramercy facility is the last remaining bauxite refinery in the United States, and state officials have cited its importance to both the economy and national security.
What's being done?
LDEQ is still negotiating with Atalco over possible fines and other sanctions, the Louisiana Illuminator reported, and Judge St. John directed the parties to file a joint status update by Oct. 20.
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Inspectors said the company has made some repairs, including fixing several levee breaches, removing vegetation that had hidden erosion, and addressing drainage and sewage treatment issues. Even so, the May 26 inspection indicated those steps had not fully solved the problem.
The Louisiana Environmental Action Network said its lawsuit is meant to prevent the case from ending in only a minimal settlement. Executive director Marylee Orr said she was "deeply disappointed" by the court's decision to keep the litigation paused.
"There is a process for this, and it feels like the community is being shut out," Orr said. "This is about protecting the community, public health, and the natural resources in that area."
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