Mining Accident Fallout
Although President Nazarbayev, following the underground explosion in a MittalSteel-run mine near Temirtau, said that mining accidents are an unavoidable risk, employees of the Indian-run steel conglomerate think otherwise. Even state-sponsored media took up the story, quoting the angry protesters that gathered on a central square in Shakhtinsk:
In Karaganda mines there are “terrible conditions: one lamp for six persons that gives light only for two hours. They give us impossible tasks only to pay us a few pennies,” - another one said.
AP runs a story with more quotes:
“Nothing can help him now, but it should not be repeated,” she said. “He often said that the mines’ equipment is old and outdated. Everything in the mines is rotten.”
Workers have long alleged that the international steel giant, which runs 61 plants across 27 countries, has done little to improve labor and safety conditions since taking over Kazakhstan’s largest metal factory and the mines that fuel it 11 years ago.
Grigory Prezent, deputy coal department director for Mittal, has a slightly different opinion:
Mittal’s Prezent defended the Soviet-era equipment at the Lenin mine, saying “the equipment is manufactured in the (ex-Soviet) CIS. It is normal, decently working equipment”.
Mittal-Steel is not likely to face any serious legal consequences, as remarks by President Nazarbayev show. Himself a former employee in the huge steel complex, he says that “…it’s impossible to foresee everything. The miners know this”.
The steel giant, which employs about 50,000 people in Kazakhstan alone, likes to see itself as a socially responsible firm, in line with ethical corporate standards.
Nonetheless, it’s important to put things into perspective. There were protests last year demanding wage increases, and, in 2004, a gas explosion took the lives of 23 workers.
Conditions in the steel/coal complex would suggest that a lawsuit is not a too distant thought, and that something needs to be done to protect the lives of the workers.
After the accident in 2004, protests by government officials were more articulate, but only because a renewal of the 10-year contract with Mittal was being negotiated, and other influential business groups wanted to have a slice of the pie (Mittal’s yearly Kazakhstan revenue is in excess of $1 bn, and all operations account for more than three percent of GDP).
This uncertain situation, combined with the prospect of getting a slice of the pie, has fueled the appetites of various business groups linked to the government. This explains the hailstorm of criticism directed at Mittal Steel — it comes from potential buyers of Karmetkombinat’s assets.
The contract got renewed, however, and Lakshmi Mittal, president of Mittal Steel, pledged to invest $500 million. Maybe that’s why criticism at Mittal Steel is not as well-organised this time, and even the trade unions do not seem to support the workers who are protesting following the latest deadly accident.
on September 27th, 2006 at 3:34 pm
What is the level of union organisation?
on September 30th, 2006 at 10:21 pm
Nick, I would have to do some reading on that. But maybe our Kazakh contributors know more about this…
on October 8th, 2006 at 11:09 pm
I’ve been reading some of yours articles, including this one. Well, can’t resist writing some of my comments. Who is making research data information for your artilces? I just hate when people writing something that they do not know or have limited information about.
Please do a proper research before giving or writing any facts!!!!!!!!!!!! or leave your comments at yellow pages magazines.
on October 9th, 2006 at 2:39 pm
Thanks for your comment Saniya.
While I am generally happy to take criticism to heart, I have a slight problem with yours.
What exactly are your problems with the above post? And as you’re not backing up your assault on me with any alternative ‘research data’, nor do you specify your problem with my earlier posts, I am quite inclined to dismiss your criticism as a clear sign of your boredom.
Most of the things I wrote above are directly traceable to media coverage of the Temirtau mining accident (just click on the hyperlinks, they’re marked in red) - so there’s not a lot of speculating/guesswork coming from my side. I didn’t fact-check the quotes I put in there obviously, but hey - this is a blog after all, no academic journal.
Again, if you disagree, I would be most eager to hear your alternative point of view. If you don’t have anything to add apart from the above, maybe consider not leaving comments like yours on blogs like this.
on February 21st, 2007 at 2:26 am
In Zenica,Bosnia 3 men died in gas accident few days ago.In Romania 25 men has died since 2001.
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2006/07/16/wrom16.xml
It is a fact that Mittal Steel is very dangerous company to work for.Indian management in Zenica (Paul Victor,M.K. Srinivasan,Sanjay Kale,Prasad Shesha) is not capable nor competitive to run a steel factory.Maybe some in India with indian safety standards where death toll is tolerable. All they want is to push production and save money.Shesha & Company`s idea od safety standard was 3 euro helmet and 4 euro rubber sole shoes and signing a paper that you have seen a 15 minutes movie (safety training certificate???) Lunatics. Sanjay Kale,beside his idiotic character,wasnt allowing money for basic safety equipment. Who brought these idiotic indian villagers to run steel plants????