Peru Wins Arbitration Dispute with Renco over Smelter Cleanup

Peru defeated an arbitration case brought by Renco Group Inc., claiming that the government had overstepped in authority by ordering its affiliate, Doe Run Peru, to clean up pollution linked to its lead and zinc smelting operations in the mountain town of La Oroya and forcing it into bankruptcy, Bloomberg News reported today. The arbitration panel issued a partial award for Peru on Friday, the Ministry of Economy and Finance said Monday in a statement. Renco, owned by U.S. billionaire Ira Rennert, had sought $800 million in compensation. Renco brought the case in 2011 under the trade agreement between Peru and the U.S. The arbitration panel found that Renco hadn’t complied with the terms of that treaty and dismissed Renco’s claims for lack of jurisdiction, according to the statement. A decision on costs for the proceedings will be decided later, the Peruvian government said. Read more.