The present investigation has been based on the study of an opportunity of production dispersion strengthened composite material from waste of high purity aluminium production. Such waste represents an alloy with the following chemical composition: 50-60%Al, 25-35%Cu, y10%Fe and 5-10%Si. The alloy Al-25Cu-10Fe-10Si with a chemical composition typical for industrial anodic sludge has been milled in a high energy planetary mill. The change in morphology and properties of granules of this material during mechanical alloying is estimated. For an assessment of some operational characteristics, a consolidated sample is obtained. The compact sample of the material possesses a high level of hardness, both at room and at higher temperatures, low level of thermal expansion coefficient and high level of wear resistance.