London 02/11/2015 - The board of creditors of Doe Run Peru, South America's only polymetallic smelter, has approved a settlement that could lead to the reactivation of the La Oroya metallurgical complex and allow for the continued operations at the Cobriza Mining Unit, Peru's Ministry of Energy and Mines said in a statement.
Rosario Patiño, representative of the Ministry of Energy and Mines (MEM) and chairman of the board, said that the new agreement includes proposals for all creditors, including labour unions - one of which boycotted the meeting.
"We achieved consensus towards a common goal, which is to restart the complex for the benefit of all," Patiño said.
Resolutions included appointing a bankruptcy liquidator and agreements which will enable a new operator or buyer for the smelter to be found.
The Peruvian government has been the main creditor to Doe Run Peru, which shut down La Oroya in 2009 due to financial issues and split off from its namesake company in the US in 2007.
The smelter has also been criticised by the Blacksmith Institute for causing lead, cadmium and arsenic poisoning throughout the local community. Time Magazine referred to it as "one of the most polluted places in the world."
Before its closure, La Oroya produced 122,000 tonnes of lead and 43,000 tonnes of zinc per year according to the Ministry.
(Editing by Tom Jennemann)