Bloomberg Businessweek featured a story on a high-stakes clash between Peru and US billionaire Ira Rennert, who owned an entity called Doe Run Peru and operated the La Oroya matallurgical facility in Peru for more than a decade through Renco Group Inc. The case involves claims of contamination affecting the children of the La Oroya area. Renco is demanding $800 million from Peru because it ordered a costly pollution clean-up.
"Peru has the necessary expectation that investors maintain clean hands, protect the environment and in short follow the rules," said Peru's lead attorney Jonathan Hamilton, partner and head of Latin American arbitraton at the law firm White & Case. "Renco and Doe Run did not follow the rules."
It is the first case arising under the US-Peru Trade Promotion agreement which entered into force in 2009.