LIMA Feb 14 Peru will start the bidding on a
nearly 100-year old polymetallic smelter and a copper mine at
about $270 million in a March 10 auction, the government said on
The market price for the two assets, which Doe Run Peru
owned before going bankrupt in 2009, is estimated at about $400
million, said Guillermo Shinno, a government representative of
the group of creditors holding the auction.
The La Oroya smelter in Peru's central Andes is seen as
being worth $334 million and the Cobriza copper mine $71
million, according to the energy and mines ministry.
A 2015 auction to find a new operator for La Oroya failed to
draw any bids as potential buyers fretted over liability for
lingering pollution, labor contracts for some 2,200 workers, and
hundreds of millions in upgrades needed for the copper smelter.
President Pedro Pablo Kuczynski, a former investment banker
who took office in July, pushed back a liquidation deadline for
the La Oroya smelter last year in a renewed bid to revive it.
Kuczynski wants to ramp up Peru's smelting capacity to wring
more value from the country's minerals, which make up more than
half of overall exports.
(Reporting by Teresa Cespedes; Editing by Lisa Von Ahn)