Doe Run Peru’s Possible Bankruptcy to Spur Overseas Zinc Sales

Zinc companies in Peru, the world’s third-largest producer, will look to sell more concentrates overseas after the government said smelter Doe Run Peru may file for bankruptcy, according to a creditor, Bloomberg reported. A bankruptcy may take months to complete, said Carlos Galvez, chief financial officer of precious metals producer Cia. de Minas Buenaventura SA, a Doe Run Peru creditor. Doe Run, a unit of Renco Group Inc., may file for bankruptcy to restructure about $156 million of debt, Energy & Mines Minister Pedro Sanchez Gamarra said yesterday. Banks halted lending to Doe Run in February after metal prices collapsed and the smelter shut all operations on June 2 when suppliers refused to sell it raw materials. Copper, zinc and lead prices declined at least 49 percent in London last year, leading to $124 million in company losses. Read more.