Fluor Daniel (NYSE:FLR) announced today that it has been awarded a
contract to upgrade and modernize The Doe Run Company's metallurgical
smelting complex at La Oroya, Peru, approximately 150 miles east of Lima
in the Andes Mountains at a height of 12,540 feet. The contract value
was not disclosed.
The La Oroya project is part of Doe Run's 10-year capital improvement
program, and Fluor Daniel's Mining & Metals operating company will
provide engineering, procurement and construction management services
for the project, as well as upgrade equipment, provide safety and craft
training programs, and enhance its environmental performance. Work is
being carried out at the site with support from Fluor Daniel Mining &
Metals's offices in Santiago, Denver and Vancouver.
Jeff Zelms, president and chief executive officer of The Doe Run
Company, said, "We are pleased to announce the selection of Fluor Daniel
as our provider of engineering, procurement and construction services
for La Oroya. Having been previously affiliated with Fluor Daniel, we
are well aware of its world-class capabilities. Both organizations are
known internationally for their attention to safety, training and
environmental excellence."
"We are pleased to once again be associated with The Doe Run Company,"
said Jim Rollans, Fluor Corporation's senior vice president and chief
administrative officer. "Fluor Daniel's pledge is to establish a
successful and long-term relationship with Doe Run in South America."
Phil Asherman, president of Fluor Daniel's Mining & Metals operating
company, added, "Fluor Daniel is committed to working with Doe Run's La
Oroya division during the next several years and will provide a wealth
of knowledge and experience having worked in a safe and environmentally
sensitive manner in Peru since 1959."
The La Oroya complex represents Doe Run's first international
acquisition and expands its product line beyond lead metal to include
copper, silver, zinc, gold and several other metals. Doe Run purchased
the La Oroya site from Centromin, the Peruvian government's central
mining organization, for a total investment of $246 million, including
$125 million in capital. The sale, which was effective October 23, 1997,
is part of Peru's ongoing privatization program.
Doe Run is a fully integrated lead producer, holding six mines, four
mills and refineries, primary and secondary smelters, as well as
fabrication facilities throughout the U.S.
