In order to improve the handling capability of red mud, it is mixed with fine-grain coal material such as brown coal or lignite in dust form, in a ratio by weight of between 0.5-10:1. The liquid present in the red mud is bound by the very fine coal admixed therewith so that the resulting mixture can be stored in a silo and even pneumatically conveyed, and the oily properties of the red mud are removed by the treatment. The mixture is particularly suitable for use in connection with the hydrogenating liquefaction of coal in which the red mud is used as a catalyst.