“Peru Wins Arbitration Dispute with Renco on Smelter Cleanup”

Peru won an arbitration case over Renco Group Inc.’s claim that the government overstepped its authority by ordering an affiliate, Doe Run Peru, to clean up pollution linked to lead and zinc smelting in the mountain town of La Oroya and forcing it into bankruptcy…An arbitration panel issued a partial award for Peru on July 15, the Ministry of Economy and Finance said Monday in a statement. New York-based Renco, owned by billionaire Ira Rennert, sought $800 million in compensation…In a statement, Renco described the decision as “an insignificant victory for Peru” based on “technical legal grounds.”…“Renco plans to immediately refile the same claims in a manner that cures the technical legal defect that was the basis for the dismissal,” it said, voicing confidence that a tribunal ultimately will “render a substantial award in Renco’s favor.”…The case illustrated the complexities of allowing private investors to file arbitration claims against sovereign nations, and it became a lightning rod for the debate over remediation claims allowed under trade agreements…