BNamericas reported that Peru's mines and energy minister Mr Pedro Sánchez has ruled out government intervention in ongoing conflicts surrounding US company Doe Run's La Oroya polymetallic smelter.

The ministry said that "The current situation, as well as its solution, is the responsibility of the company."

It may be noted that Doe Run suspended operations at La Oroya earlier this month, saying it cannot meet the environmental improvement requirements, known as PAMA, established when the complex was privatized in 1997.

Despite MEM's disinclination to mediate, the labor ministry has maintained contact with company and union representatives in hopes of finding a solution to the labor issues.

The employees, who say talks with Doe Run have been fruitless, demand that the government form a committee involving the labor ministry and MEM to resolve the issue. The workers reportedly also refuse to meet with Doe Run representatives until an outcome is reached in talks between the company and its concentrate providers.

The providers’ co signed on a USD 175 million credit line earlier this year to keep La Oroya open, with Doe Run putting the asset itself up as collateral to assure the government it would comply with the PAMA requirements by October.

La Oroya was expected to produce 130,000 tonnes lead, 55,500 tonnes zinc and 66,000 tonnes copper in 2009.

(Sourced from www.bnamericas.com)