Kazakhstan Threatens to Delicense Arcelor Mittal
Finally, it happened - after series of tragedies, when dozens of miners were killed in blasts on the coal mines of Arcelor Mittal’s Kazakh subsidiary in Temirtau - the government took a firm stance. For years they were putting a blind eye on the violations of labor norms and safety at the enterprise. Yesterday, head of the Emergency Situations Agency, Vladimir Bozhko (recently appointed to the post after long service in the capacity of deputy chairman of the National Secuity Committee), took the floor on the governmental meeting and reported on the result of investigation into the most recent tragedy that had taken away lives of 30 miners.
Minister Bozhko voiced the investigatory commission’s conclusion that the guilt lies upon the employer, General Director of Arcelor-Mittal Temirtau. The commission also noted that previous tragedies - including the one in September 2006, which killed 41 miners, were also the consequence of bad management, not the “human factor” as the company was always saying.
The main problem that caused blasts was increased load on the layers. Besides, the miners were denied salary improvement because of the unfairly overestimated output norms, which made them risk their lives and health to spend more time under ground to meet the requirements. Other revelations of the commission are shocking too - for example, the coal’s selling price on these mines is the least on Earth - $24/ton, while the plants in Kazakhstan later buy it at $101, and the world price is $124.
“Necessary investments into new technologies, modernization of equipment and mechanisms are not made. Modern systems of control of gas regime in the mines are not introduced. The outdated equipment is not replaced”, reads the report.
As a result, Minister Bozhko warned Satesh Toparia, General Director of the company, that if Arcelor-Mittal fails to meet all requirements, prescribed by the commission, the government will cancel the company’s license. Prime-minister Karim Massimov added that Kazakhstan will toughen safety rules for investors working in coal and other extractive industries.
on February 24th, 2008 at 1:09 pm
The responsibility lies at the feet of mine management. Despite despertae effort of the Arcelor Mittal Management, Managers of the Coal Division would not implement the necessary safety procedures.
There attitude is that if in 2003 100 people died and if in 2006 only 50 died, nobody (including Arcelor Corporate Management) should talk to them about safety anymore.
Their Iron ore managers are lot more receptive to changes in practices for better. Coal managers know everything.
Arcelor operates some of the most geologically complicated coal m ines I have ever seen.
on March 30th, 2008 at 11:41 pm
Govermnent and investors are deciding the rules of the game.Involve the miners and the local population in deciding rules and policies.There will be faster remedy.Trust true democracy.