The Renco Group is steadfast in its commitment to environmental responsibility, a commitment that each of our operating companies consistently upholds. Each shares a pledge to reduce environmental impact and emissions in all aspects of their operations. To meet this goal, every Renco Group-affiliated company meets or exceeds all applicable government and industry standards while also developing environmentally responsible technologies, recycling and resource management strategies, and reclamation practices.

Our Companies' Record of Achievement

US Magnesium provides a perfect example of the Renco Group's overall practice of encouraging investment in technologies that reduce adverse environmental impact at its affiliated companies. Since the acquisition by the Renco Group in 1989 on Magnesium Corporation of America, the former owner of the Rowley facility, more than $50 million has been invested in environmental improvement projects at the Rowely facility that have dramatically reduced chlorine emissions, a problem that has long plagued magnesium producers. As a result of these investments, chlorine emissions have dropped from a high in the mid-1980's of more than 60,000 tons per year to about 1,500 tons per day.

The Doe Run Company, too, has demonstrated a clear commitment to protecting and improving the air, land, and water in the communities surrounding its facilities. In the past several years, the company has invested millions in environmental management and improvement projects. In the town of Herculaneum, Missouri, where The Doe Run Company operates a lead smelting facility, several initiatives have led to a dramatic reduction in emissions and lead contamination in the community. These initiatives include installing a new and innovative air filtration system, installing a vehicle wash facility, and providing for soil replacement and home cleanings.

The Doe Run Company's Resource Recycling facility recycles automobile and other types of lead-acid batteries. Lead from the batteries is reprocessed, and the liquid acid, acid paste, plastics, and other materials are recovered and sold back to battery manufacturers for recycling into new batteries. This process keeps millions of pounds of materials out of the nation's landfills. Since the Renco Group acquired Doe Run Company in 1994, the company's Resource Recycling Division has also managed to cut ambient air lead levels in half, to a level well within the EPA standard.

Renco Group-affiliated companies also continually look for opportunities to implement new and better recycling and reclamation practices. Unarco's paint lines reclaim powdered paint materials to separate and reuse particles. All steel droppings are separated during the manufacturing process and sorted for recycling, as are cardboard, banding wire and other packaging materials. Even the wood cushioning blocks used to stabilize the large coils of steel delivered to Unarco each day are re-cut into pallets for use in shipping finished products.

Doe Run Peru has, since 1997, invested more than $116 to address environmental issues with real, measurable results.

• Particulate matter dropped from 175 milligrams per normal cubic meter (mg/Nm3) in 1994 to 147 mg/Nm3 in 1997 to 72 mg/Nm3 in 2007 (through February). The maximum permissible limit is 100mg/Nm3.
• Lead dropped from 43 mg/Nm3 in 1994 to 38 mg/Nm3 in 1997 to 23 mg/Nm3 in 2007(through February). The maximum permissible limit is 25 mg/Nm3.
• Arsenic dropped from 30 mg/Nm3 in 1994 to 28 mg/Nm3 in 1997 to 12 mg/Nm3 in 2007 (through February). The maximum permissible limit is 25 mg/Nm3.
• Sulfur dioxide emissions have been reduced approximately 22.5 percent since 1997.  In December 2006 the Company completed a series of improvements on a sulfuric acid treatment plant for the zinc circuit, which contributed to this progress. The Company is on track to complete two additional acid plants for the lead and copper circuits in September of 2007 and October 2009, respectively.
• The Company has reduced effluent discharges to the Mantaro River from 42.7m3/min in 1997 to 6.5m3/min in March 2006 and has invested approximately US$38 million in a state of the art industrial wastewater treatment plant.

The company's Cobriza mine and milling facility has spent more than $10 million since 1998 to control and treat sewer water, mine water, solid waste, and hydraulic backfill. The company expects to spend another $150 million in the next three years to make further environmental improvements.

In 2006 the Company received a three-year extension on its PAMA (the environmental operating agreement with the Peruvian government) for one of the nine projects in LaOroya. The other eight projects were finished on time. The one remaining project designed to further reduce sulfur dioxide emissions is underway.

In these and many other ways, the Renco Group's affiliated companies have shown themselves to be responsible stewards of the environment, working resolutely to minimize their impact on the surrounding landscape.