How to supress Pyrophoresis - steaming iron

Now that the professionals in sci.chem, and sci.environment.waste
weren't able to furnish neither clever answers nor solutions, let me
repost it with the real, the dedicated to the core specialists, the
environmentalists: 

Machining (turning, shaping, grinding, etc) of steel parts generates
iron wastes (chips, spirals, fines) containing small amounts of lubes
as mineral oils, glycols and fatty acid amid/amines and water. 
This iron waste is drained to form sludge cakes that are accumulated
in a wet condition in huge piles in open transporter bins (30x12x5 ft). 
When full, the stuff is hauled to the steel manufacturers for recycling. 

In all too many cases whenever the stuff is laying there for some 
weeks it gets so hot that steam and stink begins to rise from the pile. 
Clearly it's the reaction of the steel with the water.

Question: what can be done to prevent this nasty steam occurrence?
Out of the question are: Drying, Watering, Covering or Diluting with sand.
Any ideas anybody?