UPDATE 2-Doe Run Peru halts La Oroya smelter work

(Adds byline, comment from workers' union, jobs details, paragraphs 10-14)

By Teresa Cespedes

LIMA, June 2 (Reuters) - Doe Run Peru, the country's fourth largest metals exporter, has halted work at its sprawling La Oroya smelter due to financial and environmental problems that have prevented it from buying concentrates, a company source said on Tuesday.

The plant, hobbled by financial woes since March, processes lead, zinc and copper. Its work permits could be canceled if it fails to meet an October deadline for environmental cleanup.

"Yes, we have halted everything. Today, lead stopped and on Friday, zinc and copper," the source told Reuters. "There are no concentrates. No one wants to sell to us."

Smelter operations have been on and off since banks cut credit lines over worries about falling metals prices. Without credit, the company could not buy needed concentrates.

In April, a group of Peruvian miners that sells supplies to Doe Run Peru agreed to give it a $175 million credit line, if its parent company, U.S.-based Renco Group, met two conditions.

The stipulations were that Renco had to fill a $156 million financial shortfall in its Peruvian unit and pledge its shares to the government as a way of promising it would complete an environmental cleanup project.

But so far the company has not turned over its shares and one of its suppliers told Reuters that Doe Run Peru has told the government it will only meet the terms of the bailout plan if its cleanup deadline is pushed back.