Story highlights Norilsk Nickel says a dike overflowed and colored the river red

The company says the overflow presents no hazards for the people and river fauna

(CNN) The mystery behind the bright red color of a river in Siberia may have been solved.

Turns out the puzzling hue of the water of the Daldykan River, by the Arctic town of Norilsk, was caused by a discharge from a metallurgical plant in the area.

After denying blame for the contamination of the water, Norilsk Nickel, the world's largest nickel producer, said Monday that a dike at its Nadezhda plant overflowed, coloring the river blood red.

"On the 5th of September after abnormal heavy rain," Norilsk Nickel said, "the overflow of one of the dikes occurred, and water entered Daldykan River."

The company said the "short-term river color staining with iron salts" presents no hazards for the people and river fauna, and said it will work to avoid such incidents in the future.

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