News Summary
Atlantic Alumina, known as Atalco, is under investigation by Louisiana regulators for the unlawful discharge of toxic heavy metals into the environment. The facility, which refines bauxite into alumina, has been cited for multiple violations affecting local waterways and is facing potential penalties. Despite plans to improve compliance, concerns remain among residents about long-term health risks in the polluted region known as ‘Cancer Alley.’
Gramercy, Louisiana — Atlantic Alumina, also known as Atalco, is facing increased scrutiny from state regulators for unlawfully discharging industrial waste that contains toxic heavy metals such as arsenic, cadmium, and chromium. The facility, located near Gramercy, is the only one in the United States that refines bauxite into aluminum oxide (alumina), which raises concerns about its operational practices and environmental compliance.
In August, the Louisiana Department of Environmental Quality (LDEQ) issued a “Notice of Potential Penalty” compliance order, which outlined violations discovered during inspections over the past year. Inspectors first identified pollution discharges from Atalco’s waste containment lakes over a year ago, and it has since been cited for dozens of environmental violations associated with breaches in the levees of its waste containment lakes.
Erosion channels caused by corrosive waste allowed hazardous substances to escape into the public drainage system, which flows into the Blind River Swamp of Lake Maurepas. An investigation indicated that Atalco had been polluting public land and waterways with toxic waste for several months without alerting local residents.
The LDEQ has now imposed new requirements on Atalco, including the submission of detailed maps and engineering drawings of drainage systems surrounding the waste lakes as well as a comprehensive plan to address levee erosion and leaks. The company has yet to furnish additional information requested by the LDEQ, which was due on November 16.
The compliance order issued on August 22 cites ongoing violations relating to the levee breaches and waste discharges. LDEQ inspectors observed multiple breaches and unauthorized discharges, including the detection of reddish-orange caustic material in public drainage ditches. Several erosion channels were identified along the levees near Outfall 003, where caustic material was found to be seeping. Additionally, inspectors located a stagnant red pool and other off-site discharges due to breaches in the containment systems.
In response to these allegations, Atalco has expressed intent to comply with the LDEQ’s orders and is implementing corrective actions, including the development of a Red Mud Lakes Integrity and Operational Workplan. However, the LDEQ has the authority to impose fines of up to $32,500 per violation for each day these issues remain unaddressed, although maximum penalties are rarely enforced.
This isn’t the first time Atalco has faced scrutiny for its operations. The refinery has received 23 violation notices in the past, alongside 78 violations related to air pollution in 2017, for which they settled for $75,000 without admitting guilt. The past year has also seen Atalco under watch for workplace safety problems, leading to several worker injuries and a contractor’s death.
The area surrounding the Atalco refinery, commonly referred to as “Cancer Alley,” is notorious for severe health problems affecting local residents. Environmental activists and researchers have voiced strong concerns regarding the long-term ecological and health impacts of Atalco’s activities. Despite these allegations, Atalco maintains that it supplies around 40% of the alumina used in the United States and faces strong competition from international suppliers.
Company management claims they are taking necessary steps to reduce pollution and improve operational practices. Nevertheless, local residents remain apprehensive about ongoing air quality challenges and potential health risks associated with the refinery’s activities.
Deeper Dive: News & Info About This Topic
- La Illuminator: Atalco on Notice
- The Advocate: Louisiana Orders Fixes to Leaking Red Mud Ponds at Atalco
- NBC News: America’s Last Alumina Refinery
- 1012 Industry Report: Louisiana Records Show This Refinery Spilled Toxic Waste for Months
- La Illuminator: Red Alert Two Atalco
- Wikipedia: Alumina
- Google Search: Atalco refinery
- Google Scholar: Atalco environmental impact
- Encyclopedia Britannica: Alumina
- Google News: Atalco

Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.