Doe Run Peru Completes PAMA Agreement in Cobriza

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Cobriza Mining Division fulfills all environmental steps outlined in the plan.

The Doe Run Company is proud to announce that its subsidiary, Doe Run Peru, has completed the terms of its environmental agreement with the Peruvian Ministry of Energy and Mines for the Company’s Cobriza Mine Division, located in the Province of Churcampa, in the Huancavelica Region of Peru. Cobriza’s environmental agreement, known by its Spanish acronym, PAMA (Program to Administer and Maintain the Ambient), was set forth by the Peruvian government and outlined several projects the Company agreed to execute after purchasing the copper mine from the government-run Centromin. Under the terms of the September 1998 agreement, Doe Run Peru agreed to complete an aggressive, multi-year, multi-million dollar plan to modernize its recently-acquired copper mining facility into one that meets current environmental standards.

The original PAMA for the Cobriza Division included four projects requiring an investment of $5.037 million from Doe Run; however, the Company more than doubled that investment, spending approximately $13.62 million to complete its PAMA in Cobriza. As a result, the Cobriza Mining Division has put a stop to more than 35 years of mine tailings discharge (executed under different administration) into the Mantaro River, constructed wastewater treatment facilities and fulfilled each of the four key PAMA projects, including:

1.    The Optimization in the Handling of Tailings Project – Doe Run invested $12.75 million to construct a tailings facility, which separates tailings and eliminates the input of mining waste into the nearby Mantaro River. This separation allows tailings to be stored and settled until they reach clean water status, which are then re-circulated for use within the facility. The elimination of tailings discharge was verified and reported to the Ministry of Energy and Mines by the auditing company MINEC Sociedad de Responsabilidad Limitada, by means of Letter No. 171-2004/MINEC, in the First Environmental Preservation and Protection Audit performed in September 2004.

2.    The Mine Water Treatment Project – Doe Run invested $290,000 to more effectively treat mining wastewater produced in the interior and on the surface of the Cobriza Mine, which is now collected through pipes in its lowest sector, where two sedimentation ponds are used to eliminate solids. The product from these ponds is clear water, which is safely discharged into the Mantaro River. After investing more than $55,000 over the projected PAMA, Doe Run completed the project in December 2003.

3.    The Compact Domestic Wastewater Treatment Plant Project – Built with state-of-the-art-

technology acquired in the United States, Doe Run’s Domestic Wastewater Treatment Plant uses

bacteria to consume organic material, which reconditions the water for use in irrigation. Doe Run invested $579,000 to create the leading wastewater treatment facility, which began operation in October 2002.

4.    The Solid Waste Disposal Project – Doe Run invested $85,000 in the construction of a landfill, which was opened in November 2001 and collects domestic waste from the camp. Recyclable materials are taken outside of the camp – including oils, which are used for refining and in vehicles; and soft drink bottles, which are used to manufacture blankets for employees. The second cell of the landfill began operating in April 2004 with a waste disposal capacity of 3.5 years.

“When we considered purchasing this facility, we knew we would have to make significant investments in order to modernize the facility to meet our own environmental standards, as well as those of the Peruvian and U.S. governments,” added Bruce Neil, president of Doe Run Peru. “Though the investment was large, the fact that it was for the protection and care of the environment, one of our core values, made it worthwhile. We’re very proud of the fact that now, after more than 35 years under different administration, the Cobriza Mining Division has been changed for the better, and under the guidance of Doe Run Peru, it has transformed into a clean mining operation, which is putting an end to tailings discharge into the Mantaro River.”

The Doe Run Company, along with its subsidiaries, is a privately held natural resource company focused on environmentally sound mineral production, recycling and metals fabrication. Based in St. Louis, the company and its subsidiaries serve as North America’s largest integrated lead producer and third-largest total lead producer worldwide, employing more than 4,000 people. The company and its employees are committed to practicing environmental stewardship while producing essential raw materials – lead, zinc, copper, gold and silver – that are needed for everyday life. Doe Run and its subsidiaries have U.S. operations in Missouri, Washington and Arizona, and South American operations in Peru. For more information about Doe Run, visit http://www.doerun.com.

Contact:     

Christi Dixon

(314) 469-3500

http://www.doerun.com

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