19 Apr
Posted by Brian Anderson as Finance Help
The head of national mining, metals and steelworkers federation FNTMMSP, Luis Castillo, called on Peru’s government to intervene to help restart operations at US-owned Doe Run Per’s polymetallic smelter in La Oroya.
“We are worried and I think the company is unable to fix their problem. In any case, we would like the government to come in and take over this situation,” Castillo told BNamericas.
Castillo was responding to reports that Doe Run will delay restarting operations at the smelter. He said he was planning to meet with union representatives from La Oroya later on Monday to determine their response to the delay.
Doe Run had planned to resume operations at the facility on April 29. However, general manager Juan Carlos Huyhua said Friday (Apr 16) the company would push back the restart date until the end of July, paper El Comercio reported.
Representatives from Doe Run were unavailable for comment on Monday.
The metallurgical complex has been operating sporadically since it was shut down in March 2009 when a consortium of banks withdrew their revolving line of credit due to a drop in metal prices.
The company had previously agreed to resume operations by January 2010, but failed to do so.
The facility in La Oroya was constructed in 1922. It includes smelters and refineries that process copper, lead, zinc and silver, as well as several byproducts, and is known for having caused serious lead contamination around the town of La Oroya.
St Louis-based Doe Run took over the plant when it was privatized in 1997 and agreed to clean up the operation.
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