Bayern`s method is the first stage of obtaining primary aluminium. The product of this process is alumina. The paper presents how much alumina was produced in the last couple of years and who were its leading producers. As the main ore for alumina production is bauxite; it was necessary to describe its characteristics: chemical composition and types of bauxites. Short description of the method (digestion, precipitation and calcination) was presented. During this process a lot of pollution is usually emitted to the atmosphere, but mostly a lot of red mud is generated. This is the main waste of the process, which at the same time is very harmful to the environment. The ways red mud is disposed or utilized were reviewed. Two kinds of red mud disposal are known: wet and dry disposal. Both were characterized and their advantages and disadvantages were outlined. The possibilities of red mud utilization were shown. The focus was put on iron recovery or recovery of compounds such as Al2O3 or TiO2. The use of red mud in building materials was discussed. Radioactivity of such materials was also analyzed. Possibility of red mud utilization as a pigment and radiopaque material was also mentioned.