Herculaneum lead smelter owes $787,000 in taxes and penalties

HERCULANEUM, Mo. -- The Doe Run Co., which owes more than $787,000 in taxes and penalties on its massive lead smelter in Jefferson County, said it plans to pay off the debt by the end of April.

Most of the money is owed to the Herculaneum-based Dunklin School District, which is due $461,000 plus penalties and interest, the St. Louis Post-Dispatch reported Saturday. That's about 11 percent of the district's budget, said Steve Martin, vice president of the Dunklin School Board.

"If we don't get that, it would be tough to take," Martin said.

Doe Run is continuing with a government-ordered, multimillion-dollar cleanup of lead contamination in Herculaneum, where the company operates the nation's largest lead smelter. Health officials recently found high levels of lead in the blood of about 45 percent of children tested who live near the smelter.

Those findings led to a deal between Doe Run and the state requiring the company to offer to buy 160 nearby homes. The company plans to make offers on about 20 homes with children under age 6 as soon as possible.

Martin said while the school district has yet to suffer from the missing tax revenue, it could if Doe Run doesn't pay soon.

"Before July 1, which is when we initiate a new budget, we sure would like to hear if we're going to get that," Martin said.

Other entities in Jefferson County awaiting payment from Doe Run include: The city of Herculaneum, $107,000; Jefferson College, $28,000; and the Joachim-Plattin Ambulance District, $22,000.

The St. Louis-based lead producer has met its tax obligations in several other Missouri counties, where it operates lead mines, mills and smelters.

A spokeswoman for Doe Run said the company decided to withhold the tax payments in Jefferson County because of "cash management" considerations. Last month, Doe Run failed to make a $15 million interest payment on bond debt.