Key Facts

About Doe Run Peru

Doe Run Peru is a mining and metallurgical company with operations located in the central highlands of Peru. The company has owned the La Oroya Metallurgical Complex since October 1997 and the Cobriza mine in Huancavelica since September 1998.

Today, Doe Run Peru is one of the largest companies in the Peruvian central Andes. With potential resources that guarantee the future of the national mining industry and the operative continuity of the principal metallurgical complex of the country, the smelter and refineries of La Oroya comprise one of the world’s largest and most technically challenging metallurgical facilities in the world.

Mission

Doe Run Peru’s mission is to generate value by processing metallurgical mining resources to benefit our clients, our employees, our communities and our investors while simultaneously honoring our social and environmental responsibilities to our communities.

History of La Oroya

In 1922, the US owned Cerro de Pasco Copper Corporation built the smelter and refineries of La Oroya, especially designed to process the polymetallic ore typical of the central Andes of Peru. In 1974, the Cerro de Pasco Corporation was nationalized. In October 1997, Doe Run Peru acquired the Metallurgical Complex of La Oroya and in 1998 it acquired the Cobriza underground copper mine.

As it arrived in Peru, Doe Run committed to invest US $107.6 million in an environmental upgrade program previously developed by Centromin Peru and approved by the Peruvian Ministry of Energy and Mines, known for its Spanish acronym PAMA. The PAMA turned out to be deficient, in terms of concept, design and engineering, as it failed to:

· address the most salient environmental priorities (i.e., how to reduce lead air level in La Oroya)

· adequately envision the real scope that would be required in each of the environmental upgrade projects

· accurately estimate the investments required for its execution

These inadequacies led to a series of changes in the scope of projects included in the PAMA, as well as the required investment. The last of these modifications occurred in October 2009, and because of the considerable complexity of the new obligations, an extension of 30 months to complete the projects was granted for its execution. To date, Doe Run Peru has fulfilled eight of nine Environmental Adjustment and Management Program, or PAMA, projects.

Improving the Environment

Doe Run Peru has exceeded the costs estimated by the government to implement the nine PAMA projects assumed by the company, and for the past eight years has reinvested all of its profits for the completion of the PAMA projects, and has not distributed any dividends to its parent.

During the past decade, we have been implementing new, cleaner technologies and modern infrastructure developments in the Complex, allowing substantial improvements in all environmental indicators. Doe Run Peru is fulfilling its commitment to turn its operation center into a modern and competitive organization subject to the highest environmental standards.

Since 1997 to early 2010, Doe Run Peru has spent US $312 million, and plans to spend an additional US $169 million to make substantial environmental upgrades at La Oroya. This is more than four times the US $107.6 million Centromin estimated these upgrades would cost.

Our environmental accomplishments achieved to date are significant. We do not produce any environmental impact with respect to water (we do not pollute any river or tributary), we have significantly reduced our solid waste impact and have made drastic reductions in air emissions at La Oroya.

Specifically:

· Dust or metal emissions through the main stack have been reduced by nearly 60%. As a result, Doe Run Peru complies with the maximum permissible requirements for particulate matter, lead and arsenic emissions;

· Since December 2007, the level of lead in the air in the city of La Oroya has dropped 61.7%, and the level of arsenic and cadmium in the air of La Oroya dropped 84.6% and 66.6% respectively;

· The operations of the Metallurgical Complex of La Oroya do not add any measurable pollution to the Mantaro River and its tributaries;

· The effluents discharged from its operations comply with Peruvian standards required in waters utilized for agricultural uses;

· There have been dramatic drops of the metallic contents in effluents discharged from the Metallurgical Complex;

· Solid waste from the Complex does not impact the soil of La Oroya, since it is processed and stored in an environmentally safe manner.

· Lead levels in blood in exposed workers dropped 38% versus 1997 and now comply with the requirements set forth by the International Labor Organization.

Improving the Community

Since 1997, Doe Run Peru’s efforts to improve the neighboring communities in La Oroya and Cobriza have been a top priority.

Doe Run Peru works with 13 communities in the surroundings of La Oroya and 8 communities in the surroundings of Cobriza in a series of programs that prioritize health, educational infrastructure, environment and the development of new production chains, emphasizing above all the training skills required for leadership roles and change.

The company’s intervention covers productive economic development (such as cattle improvement projects) as well as social development projects (including health, education and training for small businesses).
These projects aim to transcend the local survival economy and substantially increase community resources to attain competitive market participation.

Other programs have developed production chains and strategic alliances to unite production efforts and generate added value to community productivity. These programs include technological improvement and directing commercialization towards national and international markets.

Specifically, Doe Run Peru:

· advocates health and education-focused public policies to improve the La Oroya community, and participates closely with the Ministry of Health (MINSA) in its projects to improve the quality of life for the citizens of the La Oroya community with a specific emphasis on children;

· applies a model of social responsibility, operating with “public consent” and practicing “good neighbor” policies for the sole purpose of participating in the sustainable development of the surrounding communities;

· works tirelessly to generate efficient production chains in animal breeding, including cattle improvement projects and training opportunities;

· supports important programs to advance hygiene education and healthier nutritional habits through various community projects.

To learn more about specific actions taken by the company to improve the La Oroya community, please Click Here.