Kaiser fined on citations, back at work

Published 12:00 am Saturday, December 16, 2000

LEONARD GRAY / L’Observateur / December 16, 2000

GRAMERCY – Kaiser Aluminum settled with the U.S. Department of Labor thisweek and agreed to pay a $513,000 fine for 18 perceived violationsassociated with the July 5, 1999 explosion.

The plant, meanwhile, began production again this week and will continue toincrease capacity to 75 percent over the next several weeks.

The settlement remains the largest civil penalty ever paid to the Mine Safetyand Health Administration. Two supervisors, Walter Hansley of Manpower andDon Williamson, a digestion supervisor and Kaiser employee, will also pay$12,500 each for citations made by MSHA. Hansley is a digestion supervisorin the control room at the time of the explosion, was cited for not makingsure the pressure vessels were operating in a safe manner. Williamson wascited for an inadequate safety inspection performed a month prior to theexplosion.

As part of the settlement, MSHA has agree to drop five other citations,including the one which alleged that Kaiser impeded the federal investigationby concealing computer evidence.

“We continue to deny the validity of all of the citations,” Lamb said.

We are continuing discussions on all other lawsuits, but they are still pending,and have not yet been resolved.”

Meanwhile, Lamb added, “We’re just now at the point of having productcoming out. We’re very excited about having it back up and running.”

The construction cost has been revised upward, from $200 million to $275million, incorporating additional safety features in the digestion unit andenhancements to capacity. “It’s a great asset,” Lamb said.

The first, low-temperature portion of the digestion area is running now. Thesecond major portion is the high-temperature portion, which will be completein March.

“We are pleased that the plant has returned to operation and that we arenow able to resume supply to Gramercy customers who have been so patientand understanding during the past 17 months,” said Raymond Milchovich,president of Kaiser.

The company spent approximately $163 million on construction activities andreceived insurance recoveries of $73 million. The balance of the minimumproperty damage of $27 million in insurance claims is expected to bereceived by the end of the year.

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