Kaiser fined on citations, back at work
LEONARD GRAY / L'Observateur / December 16, 2000
GRAMERCY - Kaiser Aluminum settled with the U.S. Department of Labor this week and agreed to pay a $513,000 fine for 18 perceived violations associated with the July 5, 1999 explosion.
The plant, meanwhile, began production again this week and will continue to increase capacity to 75 percent over the next several weeks.
The settlement remains the largest civil penalty ever paid to the Mine Safety and Health Administration. Two supervisors, Walter Hansley of Manpower and Don Williamson, a digestion supervisor and Kaiser employee, will also pay $12,500 each for citations made by MSHA. Hansley is a digestion supervisor in the control room at the time of the explosion, was cited for not making sure the pressure vessels were operating in a safe manner. Williamson was cited for an inadequate safety inspection performed a month prior to the explosion.
As part of the settlement, MSHA has agree to drop five other citations, including the one which alleged that Kaiser impeded the federal investigation by 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 product coming out. We're very excited about having it back up and running."
The construction cost has been revised upward, from $200 million to $275 million, incorporating additional safety features in the digestion unit and enhancements to capacity. "It's a great asset," Lamb said.
The first, low-temperature portion of the digestion area is running now. The second major portion is the high-temperature portion, which will be complete in March.
"We are pleased that the plant has returned to operation and that we are now able to resume supply to Gramercy customers who have been so patient and understanding during the past 17 months," said Raymond Milchovich, president of Kaiser.
The company spent approximately $163 million on construction activities and received insurance recoveries of $73 million. The balance of the minimum property damage of $27 million in insurance claims is expected to be received by the end of the year.