Massey and James River Coal get warnings from U.S. mining agency

CHARLESTON, W.Va. -- BUSINESS BRIEFS

VIRGINIA

U.S. mine agency warns Massey, James River

The federal Mine Safety and Health Administration yesterday warned 15 mining operations to clean up their health and safety practices or face stricter enforcement.

The agency said the 13 coal mines, a dirt-processing plant and a gold mine have been cited repeatedly for "significant and substantial" violations that could have caused serious injuries or illnesses.

Among the operations warned are two mines and a processing plant controlled by Richmond-based Massey Energy Co., the nation's fourth-largest coal producer by revenue. Massey issued a statement noting that several of its operations have been warned in the past and all were able to correct problems.

The agency also singled out Richmond-based James River Coal Co. about its Blue Diamond Coal Co.'s mine No. 77. A James River spokeswoman did not immediately respond to a request for comment.

King and Queen will get Helena Chemical facility

WALKERTON -- Helena Chemical is opening a facility in King and Queen County to provide local services to farmers in the region.

The Tennessee-based company's new facility includes 30,000 square feet of warehouse space and about 5 acres of yard space. Its grand opening is Friday.

Branch manager Don Cline says the facility will allow Helena Chemical to reach the Northern Neck area, which has a strong agricultural base.

Helena Chemical provides insecticides, fertilizer and other products, along with soil testing and other services, to agricultural, ornamental and other markets.

It also has facilities in Franklin, Mount Crawford, Tasley and Winchester.

THE NATION

Bailed-out banks cut lending, Treasury says

WASHINGTON -- The government said yesterday that lending to businesses from the top banks getting bailout funds fell in January despite the billions of dollars the banks received in government support.

The Treasury Department said in a monthly report that lending on regular business loans and on business loans backed by real estate declined in January, compared with December. The findings were based on reports filed by the top 21 recipients of rescue money from the government's $700 billion financial bailout fund.

The report attributed the decline in loans banks made to businesses in January to weakening demand on the part of businesses, reflecting the dismal economy.

U.S. industrial output fell again in February

WASHINGTON -- The nation's industrial output fell for the fourth straight month in February, with factories operating at their lowest level in six decades of record-keeping. Analysts forecast more production cuts to come as companies are battered by recessions at home and abroad.

The Federal Reserve reported yesterday that industrial output dropped by 1.4 percent last month, slightly larger than the 1.2 percent decline economists had expected.

The weakness included a 0.7 percent fall in manufacturing output, which pushed the operating rate at the nation's factories down to 67.4 percent of capacity last month, the lowest level on records that go back to 1948.

The drop in manufacturing output occurred even though production at the nation's auto plants rose sharply after four straight months of declines.

Mortgage-fraud cases hit record, study says

WASHINGTON -- A mortgage industry group says there were a record number of mortgage fraud incidents last year, and Rhode Island made its first appearance as the nation's top fraud hot spot.

The number of mortgage fraud reports among loans made last year grew 26 percent from a year earlier, says a study released yesterday by the Mortgage Asset Research Institute.

The increase came as banks stepped up their scrutiny of lending practices after a tidal wave of defaults.

Alcoa outlines plans to cut dividend, costs

PITTSBURGH -- Aluminum producer Alcoa Inc. says it plans to slash its quarterly dividend, sell $1.1 billion worth of shares in a public offering and cut costs by more than $2.4 billion annually by 2010 to cope with the economic downturn.

The Pittsburgh-based company says its actions will boost working capital by $800 million this year and reduce capital spending by an additional $1 billion in 2010. In January, Alcoa announced it would lay off about 13 percent of its global work force by the end of 2009, further cut production and spending, and sell four of its subsidiaries.

Alcoa acquired Henrico County-based Reynolds Metals in 2000.

Interest rates mixed at Treasury bill auction

Interest rates on short-term Treasury bills were mixed in yesterday's auction with three-month bills declining and rates on six-month bills rising.

The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.250 percent, up from 0.240 percent last week. An additional $29 billion in six-month bills was auctioned at a discount rate of 0.445 percent, down from 0.460 percent last week.

The three-month rate was the highest since three-month bills averaged 0.280 percent on March 2. The six-month rate was the lowest since these bills averaged 0.440 percent, also on March 2.

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