Mining Journal reported that Doe Run Peru may restart its smelter within weeks after Peru’s Congress voted to extend an environmental cleanup deadline.
Mr Jose Mogrovejo VP of Doe Run said that the Renco Group unit is holding talks with banks and suppliers to reopen the smelter which has been shut since June. Peru’s Congress last week granted the smelter an additional 30 months to finish building a USD 100 million sulphuric acid plant that will help cut emissions. The decision will allow Doe Run to gain access to financing 8 months after banks halted lending to the smelter.
He said that "It’s an important step toward reaching a financing agreement. Depending on an accord with banks and suppliers we could reopen operations within weeks."
Mr Javier Velasquez cabinet chief for Mr Alan Garcia president of Peru said that the Mining Ministry will evaluate whether Doe Run has provided sufficient financial guarantees to comply with the cleanup program.
Mr Velasquez said that "We’ll see that the company meets its commitments and doesn’t use arguments to gain extra time."
Congress approved the new cleanup deadline after 2 people died in protests on September 22nd 2009 by Doe Run workers demanding the smelter be reopened. Doe Run in a statement in Peruvian newspapers denied responsibility for the protests following government threats to press charges against general manager Mr Juan Carlos Huyhua.
Doe Run said in the statement that "We are deeply surprised by these grave accusations. Neither Dr Huyhua nor any Doe Run official has any direct or indirect link to these incidents."
Mr Carlos Galvez CFO of precious metals producer Cia de Minas Buenaventura SA said that companies owed a total USD 156 million by Doe Run are unlikely to give the company any more credit.
He said that "There’s no way we can give them anything unless they pay what they owe us. There isn’t a single supplier that can assume additional debt."
(Sourced from Bloomberg)
