THE PRESENT DISCLOSURE IS DIRECTED TO A METHOD WITH A TWO-FOLD OBJECTIVE. AS IS WELL KNOWN, PULP MILL WASTES WHICH ARE PRIMARILY COMPOSED OF LIGNIN ARE DARK IN COLOR AND EXTREMELY RESISTANT TO BIODEGRADATION. ACCORDINTLY, THE DISCHARGE OF THESE WASTES TO ANY NATURAL WATERWAYS IS LIMITED BY LEGISLATION. THE PRESENT INVENTION PROVIDES A METHOD FOR IMPROVING THE COLOR CHARACTERISTICS OF THE WASTE AND FOR UTILIZING THE PRODUCT OR MATERIAL OBTAINED THEREBY TO PRODUCE VALUABLE AND UTILIZABLE MATERIALS OR CHEMICALS. BASICALLY, THE METHOD ENTAILS CONTACTING AN OXIDATIVELY TREATED WASTE AND, MORE SPECIFICIALLY, AN OXIDATIVELY TREATED WASTE LIGNIN WITH A MICROBIAL POPULATION FOR A TIME AND AT CONDITIONS NECESSARY TO CONVERT SAID OXIDATIVELY TREATED LIGNIN TO THE UTILIZABLE END PRODUCTS. EXAMPLES OF UTILIZABLE PRODUCTS WHICH CAN BE OBTAINED IN THIS MANNER ARE ORGANIC ACIDS, BIOPOLERS, PROTEINS, ANTINBIOTICS, STEROIDS, VITAMINS, FERTILIZERS, ETC.