* Sludge reservoir bursts, flooding parts of three villages
* Two killed, seven missing
(Updates injured, number of missing)
BUDAPEST, Oct 4 (Reuters) - At least two people were killed on Monday when the dam of a sludge reservoir at a big alumina factory burst, flooding parts of three villages, Hungarian news agency MTI quoted Interior Minister Sandor Pinter as saying.
The National Disaster Unit told MTI seven people were missing and ambulance staff had treated 120 injured, with more than 70 taken to hospital.
The accident occurred in western Hungary at the Ajkai Timfoldgyar Zrt plant, owned by MAL Zrt. No one was immediately available at the company to comment.
Gyorgy Bakos, a county disaster-control spokesman, told Reuters about 600,000-700,000 cubic metres of sludge had spilled from the reservoir.
According to local news portal www.naplo-online.hu, the sludge contained a strongly caustic material. MTI said that children at a school in the village of Kolontar, 160 km (100 miles) west of Budapest, had had to be evacuated.
Police have launched criminal investigations to clarify why the dam burst, MTI said. It said the regional disaster unit was considering evacuations in Kolontar late on Monday. (Reporting by Krisztina Than/Marton Dunai/Sandor Peto; Editing by Andrew Roche)
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