Hungary's government announced Wednesday it had slapped a 500-million-euro fine on the alumina plant MAL Zrt for causing a massive toxic sludge spill almost a year ago that killed 10.

"MAL Zrt will be obliged to pay a fine of over 135 billion forints (500 million euros, $684 million) for the environmental harm caused during the operation of the red mud reservoir," the government said on its website.

The height of the fine was decided based on the volumes of toxic red mud and alcaline liquids released from the reservoir, it said.

"This amounts to 1,876,622 tonnes," it noted.

MAL Zrt now has 15 days to pay the fine or appeal the decision, according to the statement.

Ten people were killed and a state of emergency was declared on October 4, after a breach in the retaining walls of a reservoir at the plant in Ajka in western Hungary sent 1.1 million cubic metres (38.8 million cubic feet) of toxic red mud cascading into surrounding villages.

The devastation spread across an area of 40 square kilometers (over 15 square miles) in what officials called Hungary's worst chemical accident, but the company responsible for the devastation was allowed to resume production barely two weeks after the accident.

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