Resource: Platts
By Renzo Pipoli
Doe Run Peru's La Oroya metal refinery will not be sold off as previously expected, as the company will instead be restructured, the court-appointed administrator said Friday.
"The creditors of Doe Run [Peru] met this week and agreed to change the mandate from a liquidation to a restructuring, designating Right Business as the administrator," Rocio Chavez, general manager of Right Business, said in an e-mail Friday. "It has given us 60 days to ready a restructuring plan."
Chavez said that if the mandate had not been changed, the plant would have been immediately closed and workers let go, because the prior mandate to liquidate assets was about to expire.
The plant is processing zinc and lead, but not copper. Chavez said the copper circuit remains closed because a project to produce sulfuric acid -- while at the same time cutting emissions -- and make other upgrades is not finished, "which makes that operation impossible."
The refinery stopped operating in mid-2009, after suppliers halted deliveries of feedstock mineral concentrates due to nonpayment. At the same time, the Peruvian government said the company had to invest in upgrades that would reduce pollution. The company's creditors eventually took it to bankruptcy court, leading to the appointment of a temporary administrator.
La Oroya, which before the closure had some 3,500 workers, restarted operations with fewer than 1,000 workers in July 2012, running just the zinc circuit. It restarted the lead circuit later the same year.
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