Processing of waste created in the aluminium scrap recycling companies is one of the most challenging tasks due to its toxic nature. As aluminium recycling waste continues to accumulate, it is becoming a major problem for the environment. Useful utilisation of given waste is much more attractive and appropriate alternative than depositing it on the waste sites that is practicing all over the world. The main task of the present research is to investigate the possibility of non-waste utilization of aluminium recycling waste and reprocessing it into environmental friendly material. In the present studies, lightweight expanded clay aggregate were produced from natural plastic clay and aluminium waste coming from aluminium scrap recycling factories. Due to results obtained from chemical and mineralogical investigations of given waste, heat treatment in the temperature range from 1150oC to 1280oC was selected as appropriated method in order to eliminate impurities of residues, like ammonia. The phenomenon of gasses emission during the heat treatment of waste is used as initiator for creation of extra porous structure of sintered ceramic bodies. The effect of raw material composition, previous treatment of aluminium recycling waste and sintering temperatures on the aggregates properties were evaluate. Physical and microstructural properties of sintered aggregates were determined.