Suit filed against Southern Peru copper

Denver — A Peruvian group has filed suit in New York, N.Y., claiming 40 years of emissions from the Ilo smelter have poisoned nearby residents and harmed the regional ecosystem. The plant is operated by Southern Peru Copper (PCU-N).

The company, which is 54% controlled by Nuevo Grupo Mexico, calls the suit meritless and says it is similar to a Texas lawsuit filed in 1995. The judge in that case ruled that the company was subject to Peruvian legislation and regulation, and that the suit would interfere with the country’s right to control its own resources.

The current suit, which seeks unspecified damages, alleges that incidences of respiratory ailments, cancer and other diseases have increased over the period 1991-1995.

The smelter, which sits on the southern coast of Peru, northwest of the town of Ilo (population 100,000), was built in 1960. In early 1999, the company started a US$875-million expansion program, which entailed installing new flash furnaces with gas recovery equipment and acid plants.

The program continued after control of the company shifted to Grupo Mexico in the wake of the late 1999 takeover of Southern Peru’s parent, Asarco.

Southern Peru complies with current regulation as required by the government-ordered environmental compliance and management program, and says it expects to reduce emissions beyond what is required.