Kolontár red mud spill (Hungary)
- 10 people died.10 dead; nine at the time of the NBC/AP report.
A red mud reservoir failed on 4 October 2010, killing 10 people. The operator's liability cover was HUF 10m (or HUF 20m by the chairman's early account), against damage reported at about HUF 35bn.
Cover: official figure per Világgazdaság (7 October 2010); the chairman early on said HUF 20m. Damage figure as reported by Világgazdaság.
Status As of 2019–2020 (latest court stage recorded): managers convicted, including MAL's chief executive, and the sentences upheld by the Kúria; no record found of collection of the HUF 135bn fine.
- Hungarian state — Spent HUF 38bn on recovery NBC News (AP)
- Communities and people at Kolontár — 10 people died; about 184 million gallons of red mud released NBC News (AP)
What happened
On 4 October 2010 a red mud reservoir operated by MAL Zrt failed at Kolontár, Hungary. About 184 million gallons of red mud were released and 10 people died (nine at the time of the NBC/AP report).
MAL's third-party liability cover was HUF 10m (the official figure; the chairman said early on it was HUF 20m, about $102,000, as NBC/AP reported), against damage of about HUF 35bn. Világgazdaság wrote that MAL's insurance would not pay ("nem fizet") for the red sludge damage. No exclusion was cited; the gap was the limit. Asset cover was HUF 8.5bn. The insurer was not named.
A fine of HUF 135bn was set in 2011 and suspended by a court in 2012. The state spent HUF 38bn on recovery. MAL Zrt entered liquidation in 2013, and no record of collection of the environmental fine was found.
In 2016 a first-instance court acquitted fifteen defendants. In 2019 the Győr court found ten people guilty, including MAL Zrt chief executive Zoltán Bakonyi, who received two and a half years in prison. His deputy received two years. The Kúria, Hungary's supreme court, upheld the sentences, and the sentence was served.
- 20104 October: MAL Zrt red mud reservoir fails at Kolontár; about 184 million gallons released; 10 dead. 7 October: Világgazdaság reports third-party cover of HUF 10m against damage of about HUF 35bn
- 2011Fine of HUF 135bn
- 2012Court suspends the HUF 135bn fine
- 2013MAL Zrt enters liquidation
- 2016First-instance court acquits fifteen defendants
- 2019Győr court finds ten people guilty; Zoltán Bakonyi receives two and a half years; Kúria later upholds the sentences
What was said
“MAL's third-party liability insurance was worth 20 million forints”
“does not pay”
Where accounts differ
Each party's account, side by side, with its source. The record does not settle these points; it shows them.
Third-party liability cover was HUF 10m (official figure) against damage of about HUF 35bn; MAL's insurance "does not pay" for red sludge damage; no exclusion cited, the gap was the limit.
Világgazdaság (vg.hu)MAL's third-party liability insurance was worth 20 million forints (about $102,000).
NBC News (AP)No statement in the sources; the insurer was not identified.
How it looked
Shown
Recorded
- Third-party liability cover was HUF 10m (official figure) against damage of about HUF 35bn; asset cover was HUF 8.5bn; the insurer was not named.
- Fine of HUF 135bn (2011), suspended by a court in 2012; the state spent HUF 38bn on recovery.
- Managers were convicted and Hungary's supreme court (the Kúria) upheld the sentences.
- MAL Zrt was liquidated in 2013; no record of collection of the environmental fine was found.
Who gained
Reached nature or the ground
Gained elsewhere
Responses on record
- MAL Zrt (chairman) (October 2010): Said early on that third-party liability cover was HUF 20m (the official figure was HUF 10m). · Világgazdaság (vg.hu)
- Hungarian state (2010–2011): Paid HUF 38bn for recovery. · NBC News (AP)
In court and with insurers
Lawsuits and rulings
- 2019Claimant wonCriminal case against MAL Zrt managers (Ajka red mud)Hungarian first-instance court (2016); Győr court (2019); Kúria · Criminal · State (prosecuting authority not named in the sources) → Fifteen defendants at first instance, including MAL Zrt chief executive Zoltán Bakonyi
A first-instance court acquitted fifteen defendants in 2016. In 2019 the Győr court found ten people guilty; Zoltán Bakonyi received two and a half years in prison and his deputy two years. The Kúria upheld the sentences and they were served.
- 2011Outcome not on recordHUF 135000000bn Fine (2011), suspended by a court in 2012HUF 135bn environmental fine against MAL ZrtHungary (authority not named in the sources) · Administrative · Hungarian authorities (not named in the sources) → MAL Zrt
A court suspended the fine in 2012. MAL Zrt entered liquidation in 2013, and no record of collection of the fine was found. NBC News (AP)
Insurers
- 2010No policy foundHUF 10000bn Third-party liability cover (official figure); the chairman said HUF 20m early onNot named → MAL ZrtStated reason: No exclusion cited; the gap was the limit.
Third-party liability cover was HUF 10m against damage of about HUF 35bn; Világgazdaság wrote that MAL's insurance "does not pay" for red sludge damage. Asset cover was HUF 8.5bn. Világgazdaság (vg.hu)
What nature saw
Nature's report opens this page. Below: further outcomes measured on the ground.
What we don't know
Nature
- Not measured Harm to nature: The record holds no measurement of harm to nature.
Court
- Unclear HUF 135bn environmental fine against MAL Zrt: outcome not on record.
Insurers
- Unclear Not named: no decision on record.
Accounts
- Disputed How large was MAL's liability cover compared with the damage?
- None on record Insurer (not named): No statement in the sources; the insurer was not identified.
Record
- None on record The insurer was not named in the sources.
- Disputed Conflicting figures for the operator's third-party liability cover: HUF 10m (official figure, per Világgazdaság) and HUF 20m (the chairman early on; reported by NBC/AP as about $102,000).
- None on record No insurer refusal on the grounds of an exclusion was documented; the gap was the policy limit.
- None on record No record of collection of the HUF 135bn environmental fine in the company's liquidation was found.
Did the harm stop?
Not recorded in the sources reviewed.
Who paid?
The Hungarian state spent HUF 38bn on recovery. MAL's third-party liability cover was HUF 10m against damage of about HUF 35bn; the HUF 135bn fine was suspended and the company was liquidated in 2013, with no record found of the fine being collected.
Sources
Press and investigations
- Világgazdaság article, 7 October 2010 (title from URL slug: egy-autobalesetnel-tobbet-fizethet-a-biztosito-mint-az-iszapkatasztrofanal)Világgazdaság (vg.hu) · 2010-10-07
- NBC News/AP report on the Hungary red mud spillNBC News (AP) · 2010-10
Connected cases
- Baia Mare cyanide spill Romania · 2000–2009
- Government of Hungary (Government) — here: Paid HUF 38bn for recovery; there: Claimant for about $100m