Renco Group, Inc. Calls On Peruvian Government to Honor Legal Obligations

Oct 15, 2010, 16:39 ET from The Renco Group, Inc.

NEW YORK, Oct. 15 /PRNewswire/ -- The Renco Group, Inc. today called on the Republic of Peru to honor its legal obligations and acknowledge its full liability and responsibility for all claims of injury brought by Peruvian citizens stemming from environmental conditions in and around the town of La Oroya, Peru.

Through its State-owned entity Centromin, the Republic of Peru owned the La Oroya Metallurgical Complex from 1974 to 1997.  Before and during the period of government ownership, the operations of the La Oroya Complex by Centromin and its predecessor caused environmental contamination in and around the town of La Oroya where the mining complex is located.  

In 1997, The Renco Group's affiliate Doe Run Peru acquired substantially all of the shares in the La Oroya Complex from Centromin through a Contract of Stock Transfer.  As an important part of the sale, Centromin and the Republic of Peru agreed to take full responsibility for claims of injury or damage relating to contamination emanating from the La Oroya complex.

A group of citizens who live near the town of La Oroya filed eleven lawsuits against The Renco Group and affiliated entities and individuals in the Circuit Court of the State of Missouri, Twenty-Second Judicial Circuit, for the City of St. Louis, Missouri, U.S.A., claiming they have been harmed by environmental contamination in La Oroya.    Last month, the court in the U.S. ruled that the lawsuit would go forward in that venue.  

The Renco Group, Inc. has now called on Centromin, its successor Activos Mineros S.A.C., and the Republic of Peru to honor their promises and contractual commitments by: (1) appearing in the lawsuits; (2) acknowledging liability and responsibility for any damages that the Peruvian plaintiffs may be awarded in the lawsuits; and (3) releasing and holding The Renco Group and its affiliates harmless from claims made by the plaintiffs in the lawsuits, and reimbursing The Renco Group and its affiliates for all legal fees and expenses.

Juan Carlos Huyhua, President and General Manager of Doe Run Peru, stated:  "Consistent with its contractual obligations, Centromin, its successor, and the Republic of Peru must now honor their responsibility and liability towards The Renco Group and its affiliates for any damages that these plaintiffs may be awarded."  

About the Renco Group

The Renco Group, Inc. is a private holding company that makes long term investments

in companies across a range of industries. Renco operates a decentralized business model with each company's highly experienced management team operating independently and with broad autonomy. All affiliated operating companies are united in their commitment to environmental responsibility, to ensuring the health and safety of their employees, and to respecting and protecting the communities in which they operate.

SOURCE The Renco Group, Inc.