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    Italian judges open corruption probe into steel plant

    BARI, Italy, Aug 16 (Reuters) - Magistrates have opened a

    corruption investigation into Italy's ILVA steel plant on

    suspicion bribes may have been paid for environmental reports

    playing down the scale of pollution at the site, a judicial

    official said on Thursday.

    Accusations of pollution there have become a problem for the

    government of Prime Minister Mario Monti as ILVA is one of the

    few big industrial plants in the impoverished southern region,

    employing 12,000 people and supporting thousands of other jobs

    indirectly.

    Several executives of the family-owned Riva group, which

    owns the plant, as well as a local official in the Taranto area

    have been placed under investigation into possible corruption,

    the judicial official said.

    A spokesman for Riva declined to comment when contacted by

    telephone.

    Last month, magistrates ordered the plant to be partially

    closed down because of fears that dioxins and other chemicals

    pumped from the site may have led to hundreds of deaths in the

    past 13 years around Taranto in the "heel" of Italy.

    A separate investigation into the environmental damage is

    already underway and eight executives have been placed under

    house arrest over the case.

    Industry Minister Corrado Passera and Environment Minister

    Corrado Clini are due to visit the plant on Friday.

    The government, facing a deepening economic recession that

    has dragged Italy ever further into the euro zone financial

    crisis, has criticised last month's ruling by magistrates and

    said it is ready to appeal against the decision to order a

    partial closure.

    "The biggest job we have at the moment is making sure that

    we avoid the definitive closure of ILVA in Taranto," Passera

    told the weekly Oggi in an interview.

    ILVA, one of Europe's biggest steel makers, is responsible

    for almost a third of Italy's steel output and its closure would

    be very damaging for the south, an underdeveloped region plagued

    by high unemployment and organised crime.

    But health ministry figures indicate that deaths from cancer

    in the region are 15 percent above the national average and lung

    cancer death rates 30 percent higher.

    The government expects to pass a decree by Sept. 30

    outlining steps the plant must take to reduce pollution.

    According to prosecutors, noxious fumes from the plant have

    caused around 400 deaths over the past 13 years. The company

    says the situation has improved significantly recently.

    (Reporting by Vincenzo Damiani and Massimiliano Di Giorgio,

    Writing By James Mackenzie; Editing by Matthew Tostevin)