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April 11, 2008 |
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DOE RUN: Unit Reviews ISO Certification Environmental Parameters Following significant emission level improvements in recent months, Doe Run Peru has begun a review to update and establish new parameters for measuring the environmental conditions at its metals processing facility in La Oroya as part of its commitment to its environmental operating agreement with the Peruvian government. The review was begun following a decision by the certification agency to suspend Doe Run Peru's 2006 ISO 14001 certification for the environmental management of the smelter. Doe Run Peru is updating emissions information about the La Oroya metallurgical complex to ensure that it aligns with the requirements for certification. Particulate matter emissions in La Oroya have decreased by more than 60% since Doe Run Peru assumed ownership of the smelter in 1997. Since Doe Run Peru received ISO 14001 certification in July 2006, the following improvements, among others, have been made at the La Oroya complex: -- 60% reduction in particulate emissions -- 61.7% reduction of air lead levels -- 72% reduction of cadmium levels in the air -- 81% reduction of arsenic in the air -- Virtual elimination of polluting liquid discharges from the smelter into the Mantaro and Yauli rivers Recently, representatives of the government's Ministry of Health/DIGESA, OSINERGMIN and CONAM discussed the significant reduction of emissions and improvement in air quality in La Oroya at a meeting of the Peruvian Congress. The government representatives also noted during the meeting that the environmental improvements in La Oroya in the 10 years since Doe Run Peru arrived there had resulted in a significant improvement in the quality of life in the community. "For us it is fundamental that we have clear and transparent processes and that they be reflected in documents like the ISO certification that was granted to us years ago. Today the situation has changed, the improvements at La Oroya are evident and we think that this review and updating is appropriate at this time," said Doe Run Peru's vice president for environmental affairs, Jose Mogrovejo. About Doe Run Based in St. Louis, Mo., The Doe Run Company -- http://www.doerun.com/ -- is a privately held natural resources company dedicated to environmentally responsible mineral production, metals fabrication, recycling and reclamation. The company and its subsidiaries deliver products and services needed to provide power, protection and convenience through premium products and associated metals including lead, zinc, copper, gold and silver. As the operator of one of the world's only multi-metal facilities and the Americas' largest integrated lead producer, Doe Run employs more than 5,000 people, with U.S. operations in Missouri, Washington and Arizona, and Peruvian operations in Cobriza and La Oroya. Doe Run Peru S.R.L., an indirect Peruvian subsidiary, operates a smelter in La Oroya, Peru, one of the largest polymetallic processing facilities in the world, producing an extensive product mix of non-ferrous and precious metals, including silver, copper, zinc, lead and gold. Doe Run Peru also has a copper mining and milling operation in Cobriza, Peru in the region of Huancavelica, which is approximately 200 miles southeast of La Oroya in Peru. Doe Run Peru Going Concern Doubt As reported in the Troubled Company reporter-Latin America on Aug. 10, 2006, Doe Run Peru has significant capital requirements under environmental commitments and guarantees and substantial contingencies related to taxes and has significant debt service obligations under the revolving credit facility, each of which, if not satisfied, could result in a default under Doe Run Peru's credit agreement and collectively raise substantial doubt about Doe Run Peru's ability to continue as a going concern. Doe Run Peru continues to have substantial cash requirements in the future, including the maturity of the revolving credit facility on Sept. 22, 2006, and significant capital requirements under environmental commitments. In addition, there are substantial contingencies related to taxes. The Doe Run Peru Revolving Credit Facility expires on Sept. 22, 2006, and will require negotiations to extend its terms. There can be no assurance that Doe Run Peru will be successful in extending the existing credit agreement or negotiating a new agreement, or if it is successful, that the extended or new credit agreement would be at terms that are favorable to Doe Run Peru. Any default under the requirements of the Environmental Remediation and Management Program could result in a default under the Doe Run Peru Revolving Credit Facility. A default under the requirements of the Doe Run Peru Revolving Credit Facility results in defaults under the Doe Run Revolving Credit Facility and the indenture governing the bonds. |
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