Peruvian Government Rules on Environmental Operating Agreement (PAMA) with the Doe Run Company

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GovernmentÂ?s decree enables economic, health and environmental investments to continue in La Oroya

The Peruvian Government has issued a decree related to mining in Peru that enables Doe Run Peru to seek an extension on its environmental operating agreement (PAMA). The ruling will also allow the Company to continue operations and its related economic investments in order to further its ongoing efforts to address the health and environmental issues in La Oroya.

The PAMA agreement accepted by Doe Run in 1997, originally required an investment of $107 million to complete designated projects. Doe Run has already spent $135 million on the PAMA and facility improvements, and forecasts the total costs of projects identified in the PAMA to require investment of $226 million between 2004 and 2011. Of that, $155 million is earmarked for the PAMA and the remainder for facility improvements.

“We appreciate the support of the La Oroya community that demonstrated their broad support for this request through 12,000 signatures on supportive petitions, peaceful demonstrations and positive polling results,” stated A. Bruce Neil, president, Doe Run Peru.

“While we recognize there are still many obstacles to overcome, this ruling clears the way for us to work to overcome the problems created by 75 years of uncontrolled pollution already in existence when we purchased the facility in 1997. Doe Run Peru is committed to working both to continue to improve health and environmental conditions and to continue to help the local community build a diverse economic base.”

In the next phase of its investment, Doe Run Peru will add to the amount spent thus far on technology and facility improvements with new projects that include enclosing buildings at the smelter to reduce levels of air lead in La Oroya, building a plant to remove sulfuric acid from the air, and completing projects aimed at eliminating discharges into local rivers.

“We believe that by immediately addressing the fugitive emissions from the facility, we will be able to best reduce the air lead levels, and thereby have a dramatic, positive affect and further improve both the community’s health and quality of life,” stated Neil. “Since we purchased the operation from the government in 1997, our efforts have resulted in a 27 percent reduction in worker blood lead levels, a 21 percent reduction in air lead emissions and significant reductions in discharges into local rivers.”

As Doe Run Peru moves forward with its PAMA-related projects, the Company also plans to continue its community-based efforts, including support for the soup kitchen it established for some of La Oroya’s neediest residents, refurbishing schools, providing community lighting, constructing bath facilities, conducting small business training and animal husbandry classes, establishing reforestation programs and introducing a pilot project to teach peasant farmers to produce marketable dairy products from locally produced milk.

More information on The Doe Run Company can be found at


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Tammy Stankey
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