In times of increasing demand for resources, processing various waste materials is becoming more economically and ecologically viable. Red mud is a waste material that originates from the bauxite process, also known as the Bayer process. Red mud, due to its high alkalinity and heavy metal content, is often stored in landfills, which can lead to accidents such as those in Brazil or Hungary, especially if the storage takes place above ground. Red mud contains not only iron and aluminum residues but also other economically valuable metals such as manganese, titanium, cadmium, or cobalt. Currently, only 4 million tons of the annual production of 150 million tons are utilized in various industries, which is a relatively small amount. Typically, only the iron content is further processed, leaving other potential resources untapped. Chitin has a high binding capacity for various trivalent and divalent metal ions, making it a suitable material for separating red mud into its components. It has been demonstrated that chitin can effectively remove aluminum, barium, cadmium, cobalt, copper, manganese, iron, nickel, lead, strontium, and various lanthanides from a red mud-like sludge. The elements bound to chitin can be easily removed using wet chemistry. Biologically compatible substances are predominantly used in this process, with few exceptions. The removal of elements from red sludge or other mining wastewater using chitin is a viable alternative to traditional mining methods.