Abstract: According to a conservative estimation, the solid waste (red mud) in aluminium industry discarded in China is at least 5 million tons every year. As the red mud is serious harmly to the ecological environment, the safety of red mud dams and red mud reservoirs becomes much concerned environmental problem. The storage, disposition, and application of various solid waste, including demestic waste, are not only the important tasks of modern environmental science but also the most important and urgent research subjects of Environmental Engineering Geology and Environmental Geotechnology. Using relevant theories and methods of Rock and Soil Engineering Science, the chemical properties mineral composition and the unfavorable engineering properties of red mud and their formation mechanism are systematically studied in the paper.On this basis, the authors suggest the principles and approaches to store, consolidate (dispose),and comprehensively utilize red mud.