Glencore only remaining bidder to buy Doe Run Peru

Glencore is the only remaining bidder looking to buy Doe Run Peru’s assets as the auction enters its final stage, Metal Bulletin understands.

Trafigura had been interested in buying the La Oroya polymetallic smelter and the Cobriza copper mine, but has now pulled out of the running, a source close to the sale said. 

Trafigura and Glencore declined to comment.

Trafigura and the other companies interested in buying the assets have been dissuaded from taking their bids further because of the environmental regulations in the area, the source said.

The new owner of Doe Run Peru would need to invest to bring the mine and smelter up to environmental standards.

Buyers have also been deterred by the uncertainty over new regulations on air quality, which the Ministry of Environment is due to update after giving cities, including La Oroya, an exemption in July 2013 from having to reduce sulphur dioxide emissions to 20 micrograms per cubic metre, local media reports said.

Doe Run Peru went into administration in 2012, and its creditors are in the process of finding a company to buy the assets. 

Chloe Smith 
chloe.smith@metalbulletin.com
Twitter: ChloeSmith_MB