KAZAKHSTAN: MINE EXPLOSION KILLS 41

UNCLAS ALMATY 003380

SIPDIS

SIPDIS

DEPT FOR SCA/CEN - O'MARA

E.O. 12958: N/A
TAGS: PGOV ENRG EPET KZ
SUBJECT: KAZAKHSTAN: MINE EXPLOSION KILLS 41



1. Summary: An explosion in Kazakhstan's "Lenin" coal
mine, owned by Rotterdam-based Mittal Steel, killed an
estimated 41 miners on the morning of September 20. More
than 300 escaped the mine after the blast, which was
reportedly caused by a methane gas buildup. The GOK has
formed a committee to investigate the accident, the second
deadly mine explosion in three years at Mittal-owned mines
in the Karaganda oblast. End summary.

Methane Blast Kills Dozens
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2. A methane gas explosion killed an estimated 41 miners
in Mittal Steel's "Lenin" mine, located in Karaganda (120
miles south of Astana),on the morning of September 20.
The blast, triggered at a depth of 620 meters, occurred
while 367 workers labored in the mine. 324 reportedly
were able to escape the mine after the explosion. A half-
dozen miners have been hospitalized in nearby Shakhtinsk,
two reportedly in critical condition.

Government Condolences and Inquest
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3. According to press reports, local police launched a
criminal investigation into the blast. On September 21
Prime Minister Akhmetov announced the formation of a
commission to investigate the accident, and traveled to
the scene of the accident. President Nazarbayev issued a
statement of condolences, remarking that, during his 20-
year experience working in Karaganda (as a blast furnace
operator),he had seen many deadly accidents. Mittal
Steel CEO Lakshmi Mittal also issued a statement.

Mittal a Major Employer.
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4. The Lenin mine is one of a dozen in the Karaganda
region which supplies coal to Mittal's Temirtau steel
plant, one of the world's largest. (2005 revenues were
reported at $1.4 billion. The plant accounts for 4% of
Kazakhstan's GDP, and the mining and steel complex is one
of the country's largest employers, with a workforce
exceeding 20,000.)

.With a Spotty Safety Record
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5. The Lenin mine disaster is the most recent of several
catastrophic accidents at Mittal's Karaganda industrial
complex. A December 2004 explosion at the Mittal-owned
Shakhtinskaya mine killed 23 people. Two 2005 fires in
the Temirtau steel plant, while not resulting in
fatalities, caused a drop in steel output from 2004 to

2005. Mittal's critics often charge that the Soviet-era
steel plant and mines are unsafe. While Mittal workers
occasionally voice safety concerns, the most recent worker
unrest (a strike of 3,000 miners in June 2006) focused on
wage, rather than safety, demands.

ORDWAY