Any eventual damages from lawsuits filed against the New York based Renco Group and its affiliates over environmental contamination at Doe Run Peru's polymetallic smelter in La Oroya could affect the latter's long term sustainability and restructuring proposals.

A source linked to Lima-based Doe Run Peru told BNamericas that thirty five plaintiffs from Peru filed 11 lawsuits against the Renco Group, its affiliates and individuals in a court in St Louis, Missouri, where the corporate offices of the Doe Run Company are located. The plaintiffs are claiming physical and psychological injuries from lead exposure and environmental contamination at La Oroya.

In response, the Renco Group sent a letter to Peru's government calling on it to appear in the lawsuits and assume responsibility for any compensation that the Peruvian claimants could receive from the court.

As part of Doe Run Peru's 1997 privatization agreement, the Peruvian government agreed to assume responsibility for third party claims related to contamination in La Oroya until the company completes its environmental cleanup program, known as PAMA.

The company has received several extensions to the timeline for the cleanup program, the most recent of which granted a 30-month extension in September 2009.

The source added that US holding has not received a response from the government since it sent the letter, the source said. As a result, legal representatives for Renco and its affiliates will look at other alternatives, which could include filing a lawsuit against the government for breach of contract.

(Sourced from BNamericas)