LIMA, Apr 26, 2010 (Dow Jones Commodities News via Comtex) -- Doe Run Peru, a unit of U.S.-based Renco Group Inc., will meet with workers Tuesday to negotiate a further work suspension, making a promised April restart practically impossible.

The current work suspension agreement ends Thursday. Earlier this year, the company said it would restart operations before the end of this month.

Doe Run's smelter, which normally produces copper, lead, zinc and smaller amounts of other metals, has been closed since June, when a cutoff in bank loans prevented the company from paying for metal concentrates.

Reports earlier this month said Doe Run was struggling to reach supply agreements for the mineral concentrates it needs to restart its stalled smelter.

A spokesman for Doe Run said the company would meet with employees Tuesday to "define" new work suspension agreements. He also said there were certain "difficulties" with conditions laid down by Peru's government last October, when it allowed the company an extra 30 months to complete a delayed environmental cleanup program.

The town of La Oroya, home to Doe Run's smelter, is know as one of the most polluted places on earth. The 30 month cleanup extension agreement included a demand the company restart operations within 10 months, or by July 27th, as well stipulating a number of financial conditions.

The spokesman said the government needed to "be more flexible" its conditions.

In March, Doe Run, reported to owe about $160 million to concentrate providers, announced it had reached a deal with Glencore International AG, giving it an estimated $100 million in financing. At the time, Doe Run said the deal would allow a restart of smelter operations.

In February, the government said that if Doe Run did not comply with the new restart and cleanup deadlines, it would face fines.