Marcopper Mining was a Canadian corporation that officially started its copper mining operations in 1969 at the Mt. Tapian Ore Deposit on Marinduque Island in the Philippines. When the Mt. Tapian reserve was depleted in 1990, Marcopper moved its operations to the San Antonio copper mine, three kilometers north of the Mt. Tapian site. Mine tailings from the Mt. Tapian site were discharged into Calancan Bay. It is estimated that 84 million metric tons of mine tailings were discharged into the shallow bay between 1975 and 1988. Complaints from local residents led to the Mt. Tapian open-cut mine site being converted to receive mine tailings from the San Antonio mine on a temporary basis. Marcopper plugged up the Mt. Tapian pit with a concrete fixture to allow it to act as a disposal lake for the mining waste. The use of the Tapian Pit as a waste containment system was unconventional. Environmental risk assessment and management had not been carried out by Marcopper.

The Marinduque Mines operated by Marcopper dumped waste into the shallow bay of Calancan for 16 years, totaling 200 million tons of toxic tailings. When exposed to ocean breezes, the tailings, which partially floated, become airborne and landed on rice fields, in open water wells, and on village homes. Local residents called this their "Snow from Canada." This "Snow from Canada," consisting of mine tailings, forced 59 children to undergo lead detoxification in the Philippine capital of Manila. At least three children have died from heavy metal poisoning.

In August 1996, a significant leak was discovered in the pit's drainage tunnel. The leak caused a fracture which discharged tailings into the Makulapnit-Boac river system. This released over 1.6 million cubic meters of tailings along 27 km of the river and coastal areas. The impact on the river and people who depend on it for their livelihoods were severe. The rush of tailings displaced river water which inundated low-lying areas, destroying crops and vegetable gardens and clogged irrigation channels supplying water to rice fields.

The toxic spill caused flash floods which isolated five villages, with populations of 4,400 people each, along the far side of the Boac river. One village, Barangay Hinapulan, was buried under six feet of muddy floodwater, causing 400 families to flee to higher grounds. Sources of drinking water were contaminated with toxins. Fish, freshwater shrimp and pigs were killed outright. Helicopters had to fly in food, water and medical supplies to the isolated villages. The inhabitants of 20 of the 60 villages in the province were told to evacuate.

The government estimates the toxic tailings waste killed 1.8 million freshwater and marine animals and 5 million milk fish fry. The 27-kilometer Boac river, which was the main source of livelihood for those who did not work for Marcopper, was declared unusable by government officials.

Corporate Social Responsibility (CSR) disclosure requirements now form part of Securities Law. Publicly traded companies are required to disclose any social or environmental policies that are fundamental to the company's operations, such as policies regarding the company's relationship with the environment or with the communities in which it does business, and human rights policies.

1. In the context of the above scenario, describe the costs and benefits of this mandated disclosure. How might it have made a difference if the mandate existed in the crucial years for Marcopper?
2. It has been said that the main problem with the existing legal framework for transnational companies and the protection of human rights, working conditions and the environment is that there is currently quite a large gap between the state of public international law and national private law. Illustrate with reference to the above scenario how this gap might impact implementation, notwithstanding disclosure requirements.

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Costs and Benefits of Mandated Disclosure Costs Financial Costs Implementing CSR policies and disclosing environmental and social impacts can incur significant financial costs for a company like Marco... View the full answer