Take physic, pomp

Mo’ Doe Run Peru: Gov’t Mining veep resigns over the snafu

Wowsers, it seems there’s still a little honour left in a pocket or two of the Twobreakfasts government. About 20 minutes ago the official state gazette announced that the gov’t lackey in charge of the situation until now Mining Veep, Felipe Isasi Cayo, had resigned.
The dude had taken a pretty soft line with the DRP management and assured one and all that the situation would be resolved “between the private companies”. Now he’s gone it’s easier to speculate that Peru is going to play hardball and may even do what I hope it will do…seize the plant in the name of the nation.

C’mon Twobreakfasts, give me chance to say “well done” about you for once….

UPDATE early evening: WooHoo! Bloomiedude Emery got a scoopette and it looks promising. There’s no fat lady singing on this one yet, but at least the idea is on the table and has two important backers.

By Alex Emery
June 4 (Bloomberg) — Doe Run Peru union and government
officials today will discuss a state takeover of the company’s
smelter, closed this week because of a lack of financing, a
union leader said.
Peru’s Cabinet Chief Yehude Simon may be open to a takeover
if the unit of New York-based Renco Group Inc. can’t reach an
accord with the government and creditors on a $175 million
bailout, Mining Federation General Secretary Luis Castillo said.
“Simon has promised a Plan B if the bailout falls
through,” Castillo said today in an interview at the
federation’s office in Lima. “A nationalization of the smelter
would favor workers, as the current situation is
The smelter, which was operating at 30 percent of capacity
until last week, closed all its installations on June 2 after
running out of concentrates. Banks froze Doe Run’s accounts on
Feb. 24 after metal prices collapsed. Doe Run says it needs more
time to settle its debts and invest in an environmental cleanup.
Doe Run Peru vice-president Jose Mogrovejo didn’t return
telephone calls or an e-mail seeking comment.

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