A Case Study of Marcopper Mining Disaster

A CASE STUDY ON MARCOPPER MINING DISASTER 1
Marcopper Mining Disaster
Placer Dome, also known as Placer Dome Limited, began its extensive geological
mapping and drilling for its exploration project on the island of Marinduque in Philippines which
result to the establishing of Marcopper in the country. Placer Development Ltd. has secure a loan
of $ 40 million for the new copper mining. Owning 39.9 % of the shares in Marcopper, Placer
Dome took responsibilty for the open pit planning, designing, and construction. The two
Marcopper mines were under management of Placer Dome, the President and Managers are
seconded by Placer Dome, from 1969 to 1996. Being the only mining company involved in
Marcopper, 1969-1994, Placer Dome provided the technical expertise for the two mines. In 1986,
the secret partnership in the mine between Plaver Dome and Ferdinand Marcos were discovered
and the shares were taken over and held by the successive Philippine governments until 1994,
when they were privatized.
Placer Dome’s Moral Responsibility in Marcopper Mining Disaster
Even though, they weren’t charged because they escaped their fiscal obligations without
fulfilling commitments made to the Office of the President following the tailings disaster in
1996, Placer Dome should be held morally responsible. According to Coumans (2002), Placer
Dome took responsibility for the open pit planning, designing, and construction that includes the
supervising the dumping, via surface disposal, of more than 200 million tons of mine tailings
directly on Calancan River from 1975 to 1991. Marcopper was also under design and
management of Placer Dome from 1969 to 1996. Since the primary bearers of the company have
the knowledge and freewill to implement the actions,it makes them morally responsible for the
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Marcopper Mining disaster because the corporation’s action flow wholly out of their choices and
behavior.
As what mentioned earlier, Placer Dome supervises the dumping of the mine tailings
through surface disposal of tailings into the sea which is already considered an unacceptable
practice since 1975 . Even though Placer Dome was aware that their action is considered morally
wrong, as well as the possible effects of dumping mining tailings, still, they insists on Marine
Dumping which goes against the wish of its stakeholders, the people of Marinduque, and the
Philippine government. It also delayed the cleaning of Boac river for 6 years by continuing
dumping tailings in the ocean. The ignorance of the parent company in implementing the best
practice, consultant’ advice, and government directives lead to the Marcopper disaster.
Excepting/Excusing, Mitigating, or Aggravating Circumstances Manifested in the Case
The excepting or excusing circumstance was evident in the case when Placer Dome,
Marcopper’s parent company, left the Philippines in December 2001 without fulfilling
commitments made to the Office of the President in 1996. Placer Dome escaped the fiscal
obligations with the ease of transfer of materials, goods, and capitals to relocate or shift from one
country to another. Therefore, moral responsibility of the parent company was eliminated, thus
leaving the Marcopper responsible for the damages left.
The revelation that the late Ferdinand Marcos was an accomplice of the Placer Dome and
owned half (50%) of the Marcopper mine is an example of mitigating circumstance. Considering
that the late president himself is an accomplice of Placer Dome, it lessens the moral
responsibility of the company because the president himself is a strong factor that influences the
continuing of the act.
Another example of mitigating circumstance was in October 1975, when the National
Pollution Control Commission (NPCC) approved MMC’s request to dispose off its mine tailings
via a 14-km pipeline from Tapian pit to Calancan Bay. In 1981, the government yielded to public
protests and issued a cease and desist order to stop dumping into the bay but retracted the
directive after MMC appealed. The NPCC’s approval resulted in difficulty in avoiding certain
course of actions ,thus, lessen the moral responsibility of Marcopper Mining Corporation.
Actions that Marcopper should have done for MMC prevention
Maintaining balance between well preserved natural resource and well monitored large
scale mining company operations is challenging, and if mining is to be a significant driver of
economic growth, a large- scale investment from international countries are needed. However,
even if these steps are made possible, if corruption, red tape, and bureaucracy continue to prevent
mining investments.
The Marcopper case, enabled Philippines to reflect not only in the actions of large scale
mining operations in Marinduque, but also nationally. Despite its casualties, it gave various
lessons and solutions on how to handle issues in natural resource wealth. These lessons gave
opportunity in eliminating the bad practices and improving the reputation of the large scale
mining in the Philippines through establishing governance and management norms that aspire to
world-class standards. Some of the actions that Marcopper should have done for MMC
prevention are as follows:
 Environmental compliance certificates in line with extensive consultation with all
stakeholders (Lindon & Canare, 2014). This will highly encourage large-scale companies
from acquiring permit as a form of social license to operate or as a contractual license to
legally operate in an area.
 Monitoring of the staff in Provincial DENR offices where the large-scale mining is taking
place to determine their capacity and resources to adequately monitor the operations of the
mine. The government may also consider financially giving rewards to inspectors who will
catch violations. This will decrease the possibility of inspectors receiving bribe from mining
firms that is being inspected.
 Staffing the local DENR office with competent personnel will allow them to better enforce
policies and standards (Lindon & Canare, 2014).
 Transparency of Placer Dome documents, and disclosing “Information relevant to their
concerns” to Local Stakeholders
 Conducting of Risk Assessment or Environmental Impact Assessment on Tapian Pit before
using it as an impoundment tailings in 1992. Consultation to International Consultants
before the plugging of the tunnel at the bottom of the pit. Monitoring of the tunnel and
regular clean up the river
 Fixing the the five dams and structures that were unstable and two posed immediate threat to
human, Klohn Crippen report.
Consideration and Representation of Environment as party in the case
Considering that the Marcopper mine is located at Marinduque, part of the Philippine
islands, and that Placer Dome , Marcopper’s former parent company, is a multinational company
and multinational companies operates in different nations, and faces different moral, legal,
varying norms and standards then the environment should be a part in the case that deserves
consideration and representation because there are various norms and legal standards that applies
in the environment where the large-scale mining is located. Additionally, environment
consideration and representation prevents damages to the natural resources that serves as the
livelihood of their potential consumers. Lastly, considerations in the environment prevents
threats in Human life. For example, the damaging of water resources, which people in remote
areas consider as the primary source of food and business.
References
Lindon, J, Canare T., & Mendoza, R. (2013). Corporate and public governance in mining:
lessons from the Marcopper mine disaster in Marinduque, Philippines. Asian J Bus
Ethics, Vol# 3, 171-193. Retrieved from
https://www.researchgate.net/publication/282356189
Coumans, C. (2002). Case study on Marcopper mining and the Mariduque disaster . Retrieved
from http://www.minesandcommunities.org/article.php?a=1445
Holden, W. (2015). Mining amid typhoons: Large-scale mining and typhoon vulnerability in the
Philippines. The Extractive Industries and Societies, Vol# 2, 445-461. DOI : 10.1016
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A CASE STUDY ON MARCOPPER MINING DISASTER 1

Marcopper Mining Disaster

when they were privatized.

Placer Dome’s Moral Responsibility in Marcopper Mining Disaster

Excepting/Excusing, Mitigating, or Aggravating Circumstances Manifested in the Case

leaving the Marcopper responsible for the damages left.

continuing of the act.

Actions that Marcopper should have done for MMC prevention

scale mining company operations is challenging, and if mining is to be a significant driver of

prevention are as follows:

 Environmental compliance certificates in line with extensive consultation with all

from acquiring permit as a form of social license to operate or as a contractual license to

legally operate in an area.

firms that is being inspected.

policies and standards (Lindon & Canare, 2014).

 Transparency of Placer Dome documents, and disclosing “Information relevant to their

concerns” to Local Stakeholders

 Conducting of Risk Assessment or Environmental Impact Assessment on Tapian Pit before

using it as an impoundment tailings in 1992. Consultation to International Consultants

regular clean up the river

human, Klohn Crippen report.

Consideration and Representation of Environment as party in the case

in the environment where the large-scale mining is located. Additionally, environment

livelihood of their potential consumers. Lastly, considerations in the environment prevents

areas consider as the primary source of food and business.

Ethics, Vol# 3, 171-193. Retrieved from

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