SÃO PAULO Doe Run Perus board of creditors has voted to restructure its La Oroya metallurgical complex and Cobriza Mine rather than sell the companys assets in an ongoing liquidation, AMM sister publication Metal Bulletin has learned.
The board has given the company in charge of Doe Run Perus administration, Right Business SA, 60 days to come up with a new restructuring plan. Approval of the plan would rest with the board.
"According to Peruvian law, if we havent changed the mandate from liquidation to restructuring, it would create an option of simple liquidation, which would lead to the paralyzation of all the activities at Doe Run," Ayar Lopez Cano Algorta, administrator at Lima, Peru-based Right Business, told Metal Bulletin.
The Doe Run Peru metallurgical complex in the central Andes, which was shut in 2009 due to financial difficulties and environmental problems, has recently restarted its zinc and lead circuits. Copper production remains halted as a project related to the sulfuric acid plant is still in process, precluding the restart of the circuit.
The Peruvian government is the main creditor of Lima-based Doe Run Peru, holding 36 percent of the companys debt, while Doe Run Cayman Ltd. holds 35 percent. Mineral traders and suppliers make up the remaining creditors.
Prior to 2009, Doe Run Peru produced 114,000 tonnes of lead and 43,000 tonnes of zinc annually.
A version of this article was first published by AMM sister publication Metal Bulletin.