Peru cancels permit for US-owned smelter over pollution plan

LIMA — Peru canceled the operating license of US-based Doe Run for a large smelter complex in La Oroya after the firm failed to meet a deadline for submitting a new environmental protection plan, President Alan Garcia said Wednesday."The deadline has passed for Doe Run to resolve the issue of environmental contamination," Garcia told lawmakers during his annual independence day message."The law will be strictly enforced and the operating permit canceled."Doe Run Peru's sprawling metallurgical complex was shut down a year ago as the company, a unit of US-based Renco Group, suffered from weak demand due to the global economic crisis.The government earlier this year told Doe Run that any reopening would require compliance with new environmental rules. This prompted protests from workers seeking to reopen smelters open to keep their jobs.La Oroya, a town of 30,000 located 185 kilometers (115 miles) east of Lima, is considered one of the world's most polluted cities, due to the multi-metal smelters operating in the area refining lead, zinc, gold and copper.Doe Run owes about 200 million dollars in back taxes and supplier payments and would need an estimated 160 million dollars to implement a plan of environmental protection.The company said in a statement Tuesday it hoped to restart operations at an unspecified date but noted that "there are still issues that need to be solved to ensure the sustainability" of the Oroya complex.Garcia said the government "will not allow a firm to blackmail the country" and will cancel the license rather that continue negotiations with Doe Run.Privatized and sold to Doe Run in 1997, the mine is notorious for making La Oroya the most polluted town in Peru. Sulfur dioxide from its smelters have prompted serious health concerns for the local populace.It was hoped Doe Run would be able to convert it into a clean-running facility, but the company has failed to meet several deadlines to do so as it has run into financial trouble. Copyright © 2010 AFP. All rights reserved. M

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