MEDIA RELEASE PR40709
Doe Run Peru Advancing Toward Re-Start of Operations at the La Oroya Metallurgical
Complex
LIMA, Peru, Aug. 6 /PRNewswire-AsiaNet/ --
Necessary Support of Doe Run Peru Creditors 'Within Reach'
Doe Run Peru (DRP) announced today that it is intensifying its efforts for the
global solution to re-start operations at the La Oroya Metallurgical Complex.
DRP previously signed a letter of intent which provides a $100 million
line of credit and the supply of concentrates with Glencore International AG
as announced on March 1st of this year. The global solution requires, in
part, that DRP provide appropriate guarantees not only to Glencore but also
to creditors and the Peruvian government.
However, DRP unexpectedly ran into difficulties in finalizing the
financing as a result of a pending bankruptcy process. The Company is working
with its creditors to resolve these issues through an accelerated
restructuring to secure a viable and sustainable business plan for the good
of all stakeholders. This necessary support of the creditors is within reach,
and DRP continues to work closely with its creditors to resolve the current
issues in our efforts to re-start La Oroya operations through the
restructuring process.
DRP has hired local and international experts to assess the
implementation of the remaining Environmental Adjustment and Management Plan
(PAMA) project at La Oroya. These experts are analyzing and updating the
technical and financial timelines to compensate for the delay in the
re-opening the facility. DRP remains committed to completing the last of nine
environmental projects following the re-start of La Oroya.
During the interim period, until any bankruptcy proceedings are resolved,
DRP has announced that the company would continue paying La Oroya workers 70%
of salaries during the shutdown, just as it has been doing to date.
The Company's plan is based on very strong business fundamentals
including integrated technology to maximize added value at the La Oroya
Metallurgical Complex, our highly-skilled workforce, and significant
increases of ore reserves recently discovered at the Cobriza copper mine
which will increase current concentrate production to more than 100,000
metric tons per year. These competitive advantages will secure the completion
of the environmental projects and the full payment to our creditors in a
short period of time.
DRP appreciates the continued patience of its valued workers, La Oroya
residents and their surrounding communities, central regions and the country
of Peru as DRP continues to work with its strategic partner, creditors and
the Peruvian government to resume operations at La Oroya. Resolution of these
issues will enable the company to complete the environmental projects in a
timely manner, return jobs to the local community and continue contributing
to the economy and development of Peru.
SOURCE: Doe Run Peru
CONTACT: Jim McCarthy of Doe Run Peru,
+1-202-333-8810
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