Massey fined $1.5 mln after deadly coal mine fire

NEW YORK, March 29 (Reuters) - Coal miner Massey Energy Co. (MEE.N: Quote, Profile, Research, Stock Buzz) was fined $1.5 million, the largest amount ever for mine safety violations, after two miners died in a fire last year at one of its West Virginia mines, the U.S. Department of Labor said on Thursday.

The Mine Safety and Health Administration (MSHA) said in a statement from Washington that its investigation of the Jan. 19, 2006, fire at the Aracoma Alma Mine No. 1 determined that 25 violations of mandatory health and safety laws contributed to the accident.

It noted that the regulator in March 2006 referred the case to the U.S. Attorney's Office for possible criminal charges.

"The number and severity of safety violations at the mine at the time of the fire demonstrated reckless disregard for safety, warranting the highest fine MSHA has levied for a fatal coal mining accident," said Richard Stickler, assistant secretary of labor for mine safety and health.

A spokeswoman for the agency told Reuters that the previous highest fine was $540,000 for an accident that killed two miners in Fire Creek, West Virginia, in 1991.

She said Massey was assessed $60,000 for each of the 25 violations at Aracoma.

Richmond, Virginia-based Massey said it was reviewing the report and had no specific comments. It did say that it appeared there were conditions at Aracoma at the time of the fire that did not meet Massey's safety standards.

In 2005 alone, Aracoma mine personnel conducted over 1,500 safety examinations, and federal and state mine inspectors conducted nearly 200 safety inspections, the company said.

Massey shares were down 0.8 percent at $23.91 in early afternoon trading.