In a statement on its website, MAL Hungarian Aluminium Production and Trade Company said that it had released aid of 30 million HUF, (110,000 euros, 150,000 dollars) to local authorities to help deal with the disaster.

According to the mayor of one of the villages worst hit by the sludge, the sum would go to payments of 360 euros to each family affected by the leak.

In its statement, the company also offered its condolences to the relatives of the four people who had lost their lives and said it would cover their funeral expenses.

MAL has come under fierce criticism, with officials suggesting too much of the caustic red sludge was contained in the reservoir, but the company insists it has done nothing wrong. It said it was devoting "all its energies and efforts" to alleviating the effects of the spill.

The Open Society Foundation set up by financier George Soros announced Thursday it was donating a million dollars to the victims of the spill.

AFP