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Humalite is a naturally oxidized coal-like material similar to Leonardite (Lignite) but has a much higher humified organic matter content and significantly lower residuals.

Humalite is used in water-based muds as a thinner (dispersant), and a secondary filtration control agent. It is a more stable thinner and filtration control additive at high temperatures than are the lignosulfonates.

Concentrations vary from 3.0- 30.0 kg/m³ depending upon the solids content of the system. Humalite requires the presence of hydroxyl ions (OH) for maximum effectiveness.