Doe Run Peru fined with $234,000 penalty

by Raul Chacon Pagan,

Communicator of the International Advocacy for La Oroya Health Project-Joining Hands Peru.

In August 2007, Doe Run Peru was fined by the Supervisory Authority of Investments in Energy and Mining (OSINGERMIN) for four major infractions and one minor infraction at its smelter operation in La Oroya. The US $234,000 penalty was issued for exceeding emission levels and illegal dumping. It has been broadly welcomed by national and local authorities as well as civil groups and community leaders of La Oroya. According to Carlos Rojas from the National Environmental Council: "It was the implementation of environmental authority that the country was waiting for." He believes this is a sign that the government is going to make companies comply with the environmental laws by issuing fines to lawbreakers. "This should be a motivation for Doe Run Peru and other mining companies to always comply with environmental regulations."

Monsignor Pedro Barreto, the archbishop of Huancayo and creator of the Roundtable on Environmental Dialog in Junín, sees it as an indication that national government and the society are now aware of the problem and are heading in the right direction. "This sanction tells us that the civil society helps the national government take responsibility for social problems with life and the environment. People are concerned because Doe Run will not meet commitments like PAMA [an agreement/extension requested to fulfil operational clean up] for this year and in 2009."

Because the company has been breaking the law for many years, the health and interests of the local population have been affected. Rafael Goto, president of the National Council of Churches thinks therefore the fine was deserved. "The penalty is a good precedent for the national government, which has to take its interactions with DRP more seriously."

According to Alberto Barandiarán, president of the non-profit organization Law, Environment and Natural Resources, the government resolution is important to show that the Company has not complied with its commitments, in spite of announcements of large company investments. "This shows that they have the same attitude as always."

Miguel Curi, the former vice-president of the Health Movement for La Oroya, says the fine alone does not solve the problem. “We are asking government officials that the amount of the fine be used for toxicology treatment and better nutrition in kids." Richard Romero, the secretary of the Health Movement said, "This fine is a big step ahead for the Peruvian government, and very satisfying. We hope it will be followed by other actions."

The company has been fined now three times since 1997. But with the penalty being more significant now, the chief of natural resources for the government of the state of Junín considers it a turning point in the national environmental regulation of Doe Run. According to him "You have to take it as a step ahead to help resolve the environmental issues. Fines don't resolve anything. Fines just point out what is going wrong. However, people have to keep working to see what is still going on in La Oroya, since the penalty just indicates what has happened up until January, and we have no idea what has happened since then."