Doe Run Peru Applauds Possible Extension Of Environmental Program

Doe Run Peru has applauded declarations from the president of Peru's Congress that lawmakers could extend the deadline for the completion of an environmental cleanup program at the company's La Oroya metallurgical complex.

Congressman Daniel Abugattas, a close ally of President Ollanta Humala, said Thursday that legislators will likely approve a bill to extend the period that Doe Run Peru has to complete the environmental program.

If the bill is approved, Doe Run Peru would be given 30 months to finish the program, beginning from when the company restarts operations at La Oroya. Doe Run Peru aims to restart operations on May 1.

Doe Run Peru's La Oroya complex, which produced copper, lead and zinc, was closed in 2009 after the company fell badly into debt, and the company wasn't able to secure financing. The plant is owned by Doe Run Peru, a unit of U.S.-based Renco Group Inc.

Doe Run Peru said in a statement late Thursday that it has nine projects to complete as part of the environmental program, including updating La Oroya's copper circuit and sulfuric acid plant.

The company, its creditors and the government reached a deal in January that is expected to lead to the reopening of the La Oroya facility.

Doe Run Peru said that in the coming weeks a board of creditors is expected to approve a proposal to restructure the company that includes $200 million in financing from Glencore International (GLCNF, GLEN.LN, 0805.HK) and the Renco Group.

The company said that it has invested $314 million in the environmental program, and that it will need to invest a total of $498 million to finish the program.

-By Ryan Dube, Dow Jones Newswires; 51-945 043 802; peru@dowjones.com

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