Over the past 90 years, anthropogenic degradation of soil caused by alkaline, magnesium‐rich dust deposition has presented a serious problem near magnesite processing factories in Jelšava and in Lubeník (Slovakia). The objective of this study was to investigate the chemical and biological soil properties in 14 sampling sites at different distances from factories, and based on the results, to propose further use of affected land. Results revealed that the available Mg was 3‐ to 68‐fold that of medium‐textured soils at all grassland sampling sites, and areas close to the factories contained up to 14,366–17,394 mg kg−1. Higher amounts of available Mg caused significant increase of soil pH (up to 9.39) and worsened the conditions for the growth of vegetation. As a result, a lower stock of labile soil organic carbon (501–961 mg kg−1) with consequently weaker enzymatic activity occurred. Enrichment by organic matter provides a means to support the biological activity of soil. The content of monitored heavy metals (Zn, Cu, Pb, and Ni) was not related to Mg and did not influence the enzymatic activity of soil. Because alkaline emissions have decreased by 99.8% since 1970, the application of established measures (mechanical removal of the Mg‐rich crust, incorporation of gypsum and manure into the soil), or newer methods (growing of Mg hyper‐accumulating plants) can offer more lasting positive effects than could be achieved 50 years ago. This study concluded alkaline dust was the main factor affecting soil degradation. Nevertheless, the natural origin of Mg from Mg‐parent rocks should be allowed for.