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Acid Plant Database December 27, 2010
|Owner||Doe Run Peru|
built in the 1920's by a US company and was known as Cerro de Pasco
Also known as Cerro Corporation (CICSA)
1974 - The Peruvian government nationalized the operation and made it part of Empresa Minera del Centro de Peru (Centromin)
1997 - Sold to Doe Run as part of Peru's privatization of industry
2007 - Doe Run Peru began a new relationship as an affliliate of our former parent. The Doe Run Company of St. Louis, Missouri. They are now equal and independent entities but still with a shared vision of becoming a global provider of premium metals and services.
|Plant||Zinc Plant||Lead Plant||Copper Plant|
|Coordinates*||38º 15' 37" N, 90º 22' 37" W||-||-|
|Type of Plant||Metallurgical||Metallurgical||Metallurgical|
|Lead Sinter Machine||Copper
|Plant Capacity||1967 - 170 MTPD||30,700 MTPA||1008 MTPD|
|SA/DA||1967 - 2 SA||3 SA||3/1 DA|
Temporary Shutdown June 3, 2009
Temporary Shutdown June 3, 2009
|Year Built||1967||2008||2010 expected completion|
|Technology||MECS||Fleck Chemical||Gas Cleaning:
Contact Section: Chemetics
|Remarks||Extensively revamped in 2007||Estimated cost of plant: $50 million||
Estimated cost of plant: $160 million ($71 million report elsewhere)
Site Elevation: 3810 m (12500 ft) ASL
|General||Doe Run Peru is a mining and metals company that employs some 3,000 people at its operations in Peru’s central Andes. The company has run the La Oroya metallurgical complex since 1997 and the Cobriza mine in Huancavelica province since 1998. Together they produce high-quality refined metals while at the same time working to operate in a socially and environmentally responsible way.|
December 10, 2010 - Doe Run Peru will be required to build a
$100 million plant to retain sulphuric acid emissions before it can restart
copper production at its shuttered La Oroya smelter, Energy & Mines Minister
Pedro Sanchez said. The
government may cancel the smelter concession after the Renco Group Inc.
unit, which filed for bankruptcy last year, failed to reach an accord with
creditors, Sanchez told reporters today at the ministry.
“The company must comply with its environmental cleanup plant”, Sanchez
said. “The other option is for creditors to run the smelter.”
Doe Run shut its Peruvian zinc, lead and copper smelter last year after
metals prices plunged at least 50% in London in 2008.
Doe Run Vice President Jose Mogrovejo didn’t return two telephone calls and
an e-mail seeking comment.
Peruvian metals output may decline next year before Xstrata plc and Cia.
Minera Antamina SA complete expansions at their copper mines in 2012,
Sanchez said Copper
production fell 2.5% and gold dropped 11% through October, according to the ministry.
- Doe Run Peru will be required to build a $100 million plant to retain sulphuric acid emissions before it can restart copper production at its shuttered La Oroya smelter, Energy & Mines Minister Pedro Sanchez said. The government may cancel the smelter concession after the Renco Group Inc. unit, which filed for bankruptcy last year, failed to reach an accord with creditors, Sanchez told reporters today at the ministry. “The company must comply with its environmental cleanup plant”, Sanchez said. “The other option is for creditors to run the smelter.” Doe Run shut its Peruvian zinc, lead and copper smelter last year after metals prices plunged at least 50% in London in 2008. Doe Run Vice President Jose Mogrovejo didn’t return two telephone calls and an e-mail seeking comment. Peruvian metals output may decline next year before Xstrata plc and Cia. Minera Antamina SA complete expansions at their copper mines in 2012, Sanchez said Copper production fell 2.5% and gold dropped 11% through October, according to the ministry.
March 1, 2010 - Doe Run Peru S.R.L. has reached a Letter of Intent with Glencore to support the re-start of metallurgical operations in La Oroya, Peru. Through this Letter of Intent, Glencore will supply a line of credit that may be used as a working capital facility to help re-start the La Oroya Metallurgical Complex and as part of the financing that will allow for the completion of the Environmental Adjustment and Management Plan (PAMA) that Doe Run Peru has agreed with the Government of Peru. This Letter of Intent has closed an important step in the process to restart operations in La Oroya. Doe Run Peru will continue to strengthen its efforts to make this re-start come true in the shortest time possible. The company has ratified its intention to build a long term solution to continue to meet its environmental commitments and further improve the quality of life for the population and the future generations.
January 30, 2010 - Peru's mining, oil and energy association (SNMPE) said Saturday it has expelled US mining company Doe Run from its roster for not cleaning up its pollution problems, which environmentalists say are among the worst in the world. "It has not shown... any willingness to comply with its environmental commitments and its obligations to the country, its workers, the La Oroya population and its creditors," SNMPE said in a statement. Doe Run in 1997 took over La Oroya mining complex and the Cobriza copper mine in Peru's central Andean mountain region, where it mines for lead, copper, zinc, silver, gold and a series of byproducts including sulfuric acid. The US company's La Oroya mining operation was listed in 2007 by the international environmental group Blacksmith Institute as the sixth worst polluted site in the world. SNMPE said expelling Doe Run from the association would not affect its mining business, but noted that the company was presently in "a serious financial crisis." The association said Doe Run had notified Peruvian authorities it would be unable to comply with an environmental clean-up program it assumed when it began working in Peru. The Energy and Mining Ministry said Doe Run had only complied with 52 percent of the 2006 PAMA environmental program in La Oroya and needed another 160 million dollar investment to complete it according to plan. SNMPE said Doe Run's "lack of interest in completing PAMA violates the association's ethical principles and code of conduct," earning it its expulsion. The US mining company had already been suspended from SNPE in late June.
January 14, 2010 - Doe Run Peru, the zinc and lead producer that filed for bankruptcy in August and is controlled by billionaire Ira Rennert, said it is seeking a “strategic partner” to finance the reopening of its shuttered smelter. “We’re holding talks with several companies that could help out with financing,” Doe Run Peru Vice President Jose Mogrovejo said today in a telephone interview. “There’s a lot of speculation right now.” Doe Run, a unit of Rennert’s Renco Group Inc., closed its La Oroya smelter June 2 after suppliers refused to sell it raw materials. Banks halted lending in February after copper, zinc and lead prices fell at least 49 percent in London in 2008. Lima-based newspaper Caretas reported today that Rennert is holding negotiations to sell the La Oroya smelter to Glencore International AG. Mogrovejo denied that Doe Run plans to sell 100 percent of the smelter. Marc Ocskay, a spokesman for Glencore, declined to comment when contacted by Bloomberg News. Peru’s government said today it seized $14 million that Doe Run had placed in an escrow account as a guarantee it will complete an environmental cleanup. Doe Run has 27 months to build a $160 million sulfuric acid plant to reduce sulfur emissions at its smelter, the Energy & Mines Ministry said in an e-mailed statement.
September 24, 2009 - Peru's congress has granted the financially troubled U.S.-owned Doe Run Peru smelter a two-and-a-half year extension to reduce toxic emissions, allowing the company to miss a second deadline to clean up the Andean town of La Oroya. Doe Run closed the plant in June after lenders cut credit lines amid sagging metals prices. The company agreed to complete three sulfuric acid treatment plants by 2006 when it bought the smelter from state-run Centromin in 1997. Peru's government initially said it would hold firm on an October deadline, but last week ministers asked Congress for an extension demanded by workers protesting to reopen the plant. Congress approved the extension Thursday with 74 votes in favor and nine against.
September 17, 2009 - The Peruvian government is ready to give bankrupt U.S.-owned smelter operator Doe Run Peru an additional 20 months to comply with the Environmental Clean-Up and Management Program, or PAMA, Environment Minister Antonio Brack said Thursday. The official Andina news agency cited Brack as saying that Energy and Mines Minister Pedro Sanchez told him the extension for Doe Run will be part of a bill soon to be sent to Congress. “This is so Congress decides the extension of the PAMA by 20 months, because we believe they should also give their opinion,” Brack said after taking part in a mining convention in the southern city of Arequipa. Doe Run, which declared itself insolvent early last month and is engaged in a restructuring, has already spent $400 million on a plant to treat sulfuric acid residues generated by its smelter. The firm took out an ad in Peruvian newspapers Thursday to plead its case for an extension of the PAMA deadline. But the president of Peru’s National Mining, Petroleum and Energy Society, or SNMPE, said Doe Run must offer financial guarantees that it can comply with PAMA as a condition of any extension. Hans Flury added that Doe Run will remain suspended from the SNMPE until the company demonstrates that it can eventually execute the PAMA program. Doe Run Peru, a subsidiary of U.S. conglomerate Renco has operated the La Oroya smelter – which produces lead, zinc, copper, silver and gold, as well as byproducts such as sulfuric acid and indium – in the central region of Junin since 1997 and the Cobriza copper mine in the Huancavelica region since 1998. Amid the global financial crisis, Doe Run Peru was forced to pare down its operations to a minimum, saying it lacked sufficient funds after a group of foreign banks cut off its credit line in March. After Economy Minister Luis Carranza stepped in and mediated, the SNMPE announced on April 2 that its member companies would extend a $175 million credit line to enable Doe Run, a unit of U.S.-based Renco Group, to resume operations. Even with the loan, the La Oroya plant never returned to previous production levels and shut down completely several times, provoking protests by employees. Doe Run has been a frequent target of criticism due to the high levels of toxins emitted by its smelter, which has made the nearby city of La Oroya the most polluted city in the Americas.
September 16, 2009 - The La Oroya Multi-Sector Commission, of which the environmental minister and deputy minister of mines are members, recommended granting a 20 month extension for Doe Run Peru (DRP) mining company to comply with the Environmental Management and Mitigation Program (PAMA). During this period, to begin only after the company receives new funding, DRP will have to build a sulfuric acid plant and modify the copper circuit currently used. If completed, this controversial recommendation will be the third time that the DRP has received an extension to comply with PAMA.
July 17, 2009 - Bloomberg reported that Peru’s government rejected a proposal by Doe Run Peru to reopen its shuttered lead and zinc smelter. Peru’s government said that it will not agree to delay a deadline for an environmental clean up unless the company puts up 100% of its shares as a guarantee. The Energy and Mines Ministry said that the subsidiary of the Renco Group needs to spend at least USD 100 million as compared with the USD 31 million proposed last month. Banks froze Doe Run’s accounts in February after metal prices collapsed and the smelter halted all operations on June 2nd because it couldn’t buy the raw materials needed. Copper, zinc and lead prices plunged at least 49% in London last year, leading to USD 124 million in company losses. Mr Jose Mogrovejo VP of Doe Run said that "We’re studying a new proposal for suppliers and the government to be discussed in a meeting later this week. We hope to reach an agreement on this as soon as possible." Mr Fernando Gala deputy mining minister of Peru said that US billionaire Mr Ira Rennert Renco’s owner must inject cash for the smelter. The government rejected the company’s proposal to use a prior USD 18 million guarantee and tax rebates to finance part of its USD 156 million debt to suppliers. The government may extend an October 31st clean-up deadline if the company commits USD 150 million over an 11 month period. Doe Run proposed a 30 month period to build a sulphuric acid plant to curb emissions.
June 3, 2009 - U.S.-owned
mining company Doe Run shuttered its Peruvian smelter on Wednesday, likely
costing 3,500 jobs and threatening the closure of scores of small mines as
it struggles to finance operations. Doe Run Peru called the temporary
closure "inevitable," saying it hasn't been able to find funding to
"normalize operations, pay creditors, and complete the final project" in a
required environmental cleanup, according to a statement published in local
newspapers.Doe Run Peru, a subsidiary of New York-based holding company The
Renco Group, has faced serious financing problems since March, after its
lenders cut a $75 million credit line amid sagging metal prices.
April 2, 2009 - Doe Run Peru reached an agreement with suppliers to resume operations after banks halted funding to the lead and zinc refiner in February, Peruvian Finance Minister Luis Carranza said. Doe Run Peru, a unit of Renco Group Inc., which shut 95 percent of its operations last week, will restart its smelter “soon,” Carranza said today in a press conference in Lima. A group of mining companies agreed in government-brokered talks to lend Doe Run Peru $75 million and provide $100 million of concentrates, he said. “This was entirely a private solution,” Carranza said. “The government didn’t put up a cent.” Banks halted financing to Doe Run on Feb. 24 after metals prices collapsed because of the global economic slowdown. The move forced about 30 lead- and zinc-mining companies in the Peruvian central highlands to seek other buyers for their raw materials. Peru is the world’s largest producer of silver, the third-largest miner of copper, zinc and tin and No. 5 for gold.
March 20, 2009 - Renco Group Inc.’s Doe Run Peru unit, the country’s fourth-largest exporter, has shut zinc- and lead-processing plants after a group of banks froze its accounts last month, curtailing the nation’s metal supplies. Doe Run Peru stopped buying concentrates for its La Oroya smelter in the central Andes, according to an internal memo obtained by Bloomberg News and confirmed by spokesman Victor Belaunde. The company may also close its Cobriza copper mine, Luis Castillo, general secretary of the Mining Federation, a group that represents 28,000 miners, said in a March 18 telephone interview. “The company doesn’t have any working capital despite making money over the past four years,” Castillo said. “We will meet with Energy & Mines Ministry officials to find out if the company can be saved.” Belaunde, the Doe Run Peru spokesman, said the company is working on a solution with banks and declined to comment further. The collapse of metals prices caused by the global economic crisis forced about 30 other mining companies in the Peruvian central highlands, the country’s biggest producer of zinc, lead and silver, to seek other buyers after banks “froze” financing to Doe Run on Feb. 24, according to the memo. The freeze prompted Doe Run to halt payments to suppliers the next day.
August 29, 2007 - Doe Run Peru said Monday it has begun the engineering design phase of a $71 million sulfuric acid plant for the copper circuit at the company's La Oroya metallurgical facility. The new plant, which is scheduled to be operational in late 2009, is expected to further reduce emissions at the La Oroya metallurgical complex and bring them well below governmental limits. Earlier this year Doe Run Peru announced that lead and arsenic emissions from the 80-year-old facility are down to within monthly Peruvian environmental guidelines. The new plant is the third and final stage of the last of nine projects encompassed under Doe Run Peru's environmental operating agreement with the Peruvian government. Earlier stages of the sulfuric acid project included upgrades to the zinc circuit plant (completed at the end of 2006) and the construction of the lead circuit plant (begun in July 2007). "Doe Run Peru continues to operate under agreed-upon timetables and remains committed to environmental awareness and operations that benefit the city and community of La Oroya," said Juan Carlos Huyhua, president and general manager of Doe Run Peru. Construction on the new copper circuit plant is estimated to be completed by October 2009. Doe Run Peru's first steps on the effort have included contracting industry leaders Fleck Chemical Industries Inc. and Aker Kvaerner to look into the specific engineering requirements necessary for the project, including the necessary teams, design, materials, control systems and instrumentation. So far, Doe Run Peru has invested more than $132 million on various environmental improvements, well in excess of the initial agreed-upon amount of $107.5 million. Once the PAMA projects are complete the company's related investment is expected to reach $244 million, nearly 2.4 times the initial figure.
MTPD - Metric Tonne per Day
STPD - Short Ton per Day
MTPA - Metric Tonne per Annum STPA - Short Ton per Annum
SA - Single Absorption
DA - Double Absorption
* Coordinates can be used to
locate plant on Google Earth