ROME, Nov 30 (Reuters) - The Italian cabinet passed a decree on Friday setting out the terms under which the owner of the ILVA steel plant must clean up the factory in return for allowing it to remain open in the face of grave environmental concerns.

The decree said ILVA's management would maintain responsibility for running the plant and selling output, but a government-appointed supervisor would oversee the clean-up and tough sanctions would be imposed if the necessary investments were not made.

'Beyond the sanctions already foreseen by law, the decree introduces a further sanction of up to 10 percent of annual sales if the company doesn't implement or only partially implements the environmental clean-up plan,' Environment Minister Corrado Clini told reporters after the cabinet meeting.

(Reporting by Massimilano Di Giorgio, writing by Gavin Jones) Keywords: ILVA CLEAN UP/

(gavin.jones@thomsonreuters.com)(+39 06 8522 4232)

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