In this proof-of-concept study we demonstrate that co-processing of an acidic bio-oil (pH <3) produced by the fast pyrolysis of sawmill residue hardwood chips with alkaline (pH > 12) Red Mud bauxite mining waste originating from the Bayer process can lead to a synergistic upgrading and value addition to both feed materials. The co-processing reaction is carried out in a pressure reactor at 365 C and yields a stabilized, much less acidic and more energy-dense bio-oil with an oxygen content of 3.5% and heating value of 34 kJ/g compared to 43.1% and 12 kJ/g, respectively, for the crude oil. In the same reaction the Red Mud acts as a sacrificial catalyst and is converted into a partially reduced magnetic neutral gray material with a carbon content of similar to 33% (w/w). This neutralized material may have possible use as an iron ore, iron ore pelletization binder or soil additive. The co-processing of the two waste streams - one derived from forestry by-products, the other from bauxite mining and processing operations - may thus offer attractive economic and ecologic synergies. Two principle possible scenarios for an actual realization for such a process on a larger scale are discussed. (C) 2013 Elsevier B.V. All rights reserved.