History of the Company
In 1922 the US owned Cerro de Pasco Copper Corporation built the smelter and refineries of La Oroya, especially designed to process the polymetallic ore typical of the central Andes. In 1974, the Cerro de Pasco Corporation was expropriated by the military dictatorship of General Velasco Alvarado.
In October 1997, The Doe Run Company acquired the Metallurgical Complex of La Oroya for US$ 247.9 million, after an open bid process in which the original winner (Industrias Penoles de Mexico) decided not to execute their offer. In 1998, it also acquired from the Peruvian an underground copper mine known as Cobriza.
As it arrived in Peru, Doe Run committed to invest US$ 107.6 million in an environmental upgrade program previously developed by Centromin Peru and approved by the Peruvian Ministry of Energy and Mines, known for its Spanish acronym PAMA. The PAMA turned out to be deficient, in terms of concept, design and engineering as it failed to address the most salient environmental priorities (i.e., how to reduce lead air level in La Oroya) nor did it adequately envision the real scope that would be required in each of the environmental upgrade projects. Also, the PAMA as designed by Centromin Peru vastly underestimated the investments required for its execution.
These inadequacies led to a series of changes in the scope of projects included in the PAMA as well as in the required investment. The last of these modifications occurred in October 2009 and because of the considerable complexity of the new obligations it came attached with, an extension of 30 months to complete the projects was granted for its execution. We have spent US $316 million, and plan to spend an additional US $155 million to make significant environmental upgrades, more than four times the US $ 107.6 million Centromin estimated these upgrades would cost.
At the beginning of 2007 Doe Run Peru optimistically undertook a new challenge; establishing a new relation with The Doe Run Company of St. Louis, Missouri, becoming an independent affiliate, but continuing to share the vision of providing premium metals and related services worldwide. This new arrangement freed Doe Run Peru from the liabilities of its former parent, allowing to nearly doubling its credit facility.
Doe Run Peru is now in the final phase of the PAMA, and is devoting all the required resources for its completion, to optimize its operations and strengthen the capabilities of its workforce so as to respond to the competitive channels of the world markets. In addition, Doe Run Peru and The Renco Group, Inc. committed to defer any dividends or like payments to shareholders until after the PAMA is completed.
Doe Run Perú al Día