La Oroya

Infobox City
official_name = La Oroya
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subdivision_type = Country
subdivision_name = PER
subdivision_type1 = Region
subdivision_name1 = Junín
subdivision_type2 = Province
subdivision_name2 = Yauli
subdivision_type3 = District
subdivision_name3 = La Oroya
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leader_title = Mayor
leader_name = Cesar Augusto Gutierrez Revilla
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timezone = PET
utc_offset = -5
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latd = 11
latm = 32
lats = 0
latNS = S
longd = 75
longm = 54
longs = 0
longEW = W
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coordinates_type = type:city_region:PE
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elevation_m = 3745
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website = [http://www.oroya.com.pe www.oroya.com.pe]
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La Oroya, "(Huanco language: Uru Lla" "Man / Characteristic") is a city of about 33,000 people on the River Mantaro in central Peru [ [http://www.oroya.com.pe/toponimia.htm "Toponimia de La Oroya"] ] . It is situated on the Altiplano some 176 km east-north-east of the capital, Lima, and is capital of the Yauli Province. La Oroya is the location of a smelting operation that earned the town a place on the Blacksmith Institute's 2007 report, "The World's Worst Polluted Places". [ [http://www.blacksmithinstitute.org/wwpp2007/finalReport2007.pdf "The World's Worst Polluted Places, the Blacksmith Institute "] ]

History

Settlement at La Oroya dates to about 10,000 years BC. In 1533, the Spanish established a small settlement and started a small-scale mining operation in the area, but isolation and transport difficulties hindered the extraction precious metals. At the time of the War of Independence, the area's strategic position made it a center of guerrilla activity; one of the decisive battles of the war, Chacamarca (Junin), took place nearby, and Simón Bolívar passed through the town after the battle. In 1861, the settlement was named San Jeronímo de Callapampa and in 1893 it became La Oroya. In 1925, La Oroya was designated the capital of the Yauli province and finally, in 1942, it was elevated to city status [ [http://www.oroya.com.pe/historia.htm "Bienvenidos a La Oroya, Historia"] ] .

Mining in the area developed modestly the 19th century, but did not greatly expand until the railway from Lima was completed in 1893. The railway, an extraordinary feat of engineering, was planned by the American railway builder Henry Meiggs, and crosses the El Ticlio Pass, where it reaches an altitude of 4781 metres—making it the highest standard gauge railway in the world [ [http://www.perutren.org/portal/node/15 "The Central Railway of Peru"] ] .

The smelter, now the city's main employer, was established in 1922 by the American Cerro de Pasco Corporation, who ran it until 1974 when Cerro was nationalized and became part of the state owned Empresa Minera del Centro del Peru S A, otherwise known as Centromin [ [http://www.doerun.com/whatwedo/laOroya.aspx "The Doe Run Company 'What We Do' " ] ] . In 1993, the Peruvian government decided to privatize Centromin. In 1997, 99.97% of the smelter was acquired by Doe Run Peru, a subsidiary (now an affiliate) of the Renco Group, for approximately $247.0 million. The acquisition consisted of a capital contribution to Centromin's Metaloroya of $126.5 million and a purchase price payment of $120.5 million [ [http://www.sec.gov/Archives/edgar/data/1061112/0001047469-98-018990.txt "Doe Run S-4, 1998"] ] . Doe Run Peru also bought the Cobriza copper mine for $7.5 million to maintain concentrate supplies to the copper smelter [ [http://www.sec.gov/Archives/edgar/data/1061112/0001047469-98-028982.txt "Doe Run S-4/A, 1998"] ] .

The Smelter

First to be built was the copper smelter in 1922, followed by the lead smelter in 1928 and the zinc refinery in 1952. Annual capacities were 70,000 tonnes copper, 122,000 tonnes lead and 45,000 tonnes zinc, although limited environmental regulation and temperature inversions that trap gases in the area have tended to keep production below these levels [http://www.sec.gov/Archives/edgar/data/1061112/000110465906018264/a06-5938_110k.htm "Doe Run 10 K 2006"] ] .

Metal concentrates produced in the local mines contain many other metals, traditionally making them impure. Over the years, the La Oroya metallurgists have devised methods to separate these metals into pure byproducts, and the three main smelters have been heavily integrated for this purpose. La Oroya is one of few smelting operations in the world with this capability. As a result, La Oroya produces gold and silver (mainly from refinery residues), antimony, arsenic trioxide, bismuth, cadmium, indium, selenium, tellurium, sulphuric acid and oleum] [http://www.sec.gov/Archives/edgar/data/1061112/000091205702021037/0000912057-02-021037-index.htm "Doe Run 10K 2001 "] ] This technology has helped the operation to prevent the emission of some noxious and toxic metals; however, the integrated nature of the plant has hindered the modification of individual parts of the plant.

With the acquisition of La Oroya, Doe Run inherited a complicated smelter complex. The operation had suffered from disrepair, previous owners had invested little in clean operations. As a result of years of pollution, the geography immediately around the smelter became completely denuded, the river became toxic, and the health of area inhabitants suffered. Residents have been found to have alarmingly high concentrations of lead in their blood and in the drinking water, as well as serious bronchial troubles. A 1999 study (conducted two years after Doe Run's acquisition) showed high levels of air pollution, with 85 times more arsenic, 41 times more cadmium, and 13 times more lead than amounts generally considered safe. [http://observer.guardian.co.uk/world/story/0,,2147039,00.html Poisoned city fights to save its children] ] .

Pollution

When Doe Run bought La Oroya, it took over Centromin's PAMA, (Programa de Adecuación y Manejo Ambiental or Environmental Remediation and Management Program), an environmental contract requiring environmental remediation measures. The measures required new sulfuric acid plants, elimination of fugitive gases from the coke plant, use of oxygenated gases in the anodic residue plant, a water treatment plant for the copper refinery, a recirculation system for cooling waters at the smelter, management and disposal of acidic solutions at the silver refinery, an industrial wastewater treatment plant for the smelter and refinery, a containment dam for the lead muds near the zileret plant, a granulation process water at the lead smelter, an anode washing system at the zinc refinery, management and disposal of lead and copper slag wastes, domestic waste water treatment, and domestic waste disposal. However, Doe Run Peru has been indemnified by Centromin (and guaranteed by the Peruvian Government) against any environmental liability arising out of Centromin's prior operations. Doe Run's original commitment to this program was US$107 million but it is now expected that it will cost at least $244 million [ [http://www.doerun.com.pe/news/56/doe-run-peru-reports-significant-reduction-in-air-lead-in-la-oroya "Doe Run announce lower airborne lead emissions"] ] .

The company caused stir in 2004, particularly among non-government organizations, when it said that it would not be able to complete the PAMA by the deadline of 2006, and asked for an extension. On Dec 29, 2004, the Peruvian Government issued a Supreme Decree No. 046-2004-EM, which recognized that exceptional circumstances may justify an extension of the time to complete one or more projects within the scope of a PAMA. Doe Run Peru was granted such an extension. The exact reason for the request was not given but appears to have been a combination of cash flow availability, additional PAMA requirements and additional upgrading. This includes the replacement of the reverbatory furnace with a submerged lanced reactor furnace at a cost of US$57 million that will reduce gas volume and provide a much richer sulphur dioxide off gas that is far more suitable for sulphuric acid production [http://www.sec.gov/Archives/edgar/data/1061112/000101124006000058/doerun10qa2dqtr101906.htm "Doe Run 10Q/A 2006"] ]

The PAMA has since been modified to include the reduction of stack and fugitive emissions to meet air quality objectives, certain additional pollution controls and the protection of public health including the reduction of lead levels in blood and special health programs for children and expectant mothers

Reports indicate that the liquid effluent problems have improved; In Feb 5 2008, state health officials and OSINGERMIN, an independent Peruvian regulatory agency confirmed that the quality of the Yauli or Mantaro Rivers was no longer impacted by the smelter's liquid discharges. However, the report noted that advancements to not guarantee the river's overall quality; mines above La Oroya are still considered major sources of pollution. [ [http://www.doerun.com.pe/news/58/officials-confirm-doe-run-peru-river-discharges-within-permissible-ranges "Doe Run reports river discharges within permissible ranges"] ]

Other improvements have been achieved and on March 19th 2008, the company announced a 60% improvement in particulate emissions, a 61.7% reduction in air lead levels, 72% reduction in cadmium levels and 81% decrease in arsenic levels and the virtual elimination of polluting liquid discharges from the smelter into the Mantaro and Yauli rivers [ [http://www.doerun.com.pe/news/67/doe-run-peru-reviews-environmental-certification "Doe Run Peru Reviews Environmental Certification "] ] .

Despite advancements in some areas, sulfur dioxide emissions reached record levels in August 2008 [ [http://www.peruviantimes.com/la-oroya-sulfur-contents-in-air-exceed-historical-levels-around-doe-run-smelter/ "The Peruvian Times "] ] . However, according to the Wall Street Journal, a lead acid plant that became operational in October 2008 should reduce sulphur dioxide emissions. [ [http://www.marketwatch.com/news/story/doe-run-peru-inaugurates-new/story.aspx?guid=%7B48ABCCE8-D23A-428A-8043-3347AB8E5767%7D&dist=hppr "Doe Run Peru Inaugurates New Lead Acid Plant in La OroyaPlant. Will bring substantial reduction in La Oroya plant emissions "] ] . Still to be completed is the copper acid plant, which is expected to be operational in October 2009.

References

Notes

* Instituto Nacional de Estadística e Informática. " [http://desa.inei.gob.pe/mapas/bid/ Banco de Información Digital] ". Retrieved February 29, 2008.

External links

* [http://www.oroya.com.pe Portal of La Oroya]