From 2012 Perú

Thursday, May 9, 2013

Renco's Toxic Lead Fight

Resource:  Bloomberg News
By Andrew Martin

Aross the river from Belinda Elida Barja’s two-room apartment, the lead and zinc smelters of Doe Run Peru spread smoke and dust in the mountain town of La Oroya.

Her 9-year-old son Kenyi has headaches, memory loss, stomach ailments and difficulty concentrating, Barja said. The lead in his blood measured 41 micrograms per deciliter in a 2007 test -- eight times the level the U.S. government considers a cause for action. Barja blames Doe Run Peru.

“They just think about making money,” she said.

Most of La Oroya’s children suffer elevated lead levels, according to the Peruvian government. Parents say some have symptoms -- consistent with lead poisoning -- that include anemia, convulsions, stunted growth, mental retardation and the ills Barja said her son suffers.

The question of responsibility is at the center of a high-stakes clash between Peru and U.S. billionaire Ira Rennert, who owned Doe Run Peru for more than a decade through Renco Group Inc. Far from defensive, Renco is demanding $800 million from Peru because it ordered a costly pollution clean-up that the company says forced Doe Run Peru into bankruptcy in 2010. Renco has said it’s not responsible for the children’s ailments.

Its demand was made under an arcane, often secretive investor-state arbitration system that is growing rapidly in size and scope, roiling global trade and angering countries from Australia to South Africa over the perceived trampling of their sovereign rights.

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