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| Cover of Barrick Gold Annual Report 2012 |
The Marinduque provincial government's case against Placer
Dome and Barrick Gold Corporation was first filed in 2005. It alleges that 30
years of mining operations by a Barrick predecessor caused widespread health,
environmental, and economic damages in the island of Marinduque. The Province sought compensation for the costs of restoring the environment, an order directing Placer Dome Inc. to undertake and complete “the remediation, environmental cleanup, and balancing of the ecology of the affected areas,” and payment of the costs of environmental monitoring. The Complaint addressed the discharge of mine tailings into Calancan Bay, the 1993 Maguila-guila dam breach, the 1996 Boac river tailings spill, and alleged past and continuing damage from acid rock drainage.
The following report about the case appears in Barrick Gold Corp's Annual Report 2012:
"Marinduque Complaint
“Placer Dome Inc. was named the sole defendant in a
Complaint filed in October 2005, by the Provincial Government of Marinduque, an
island province of the Philippines (“Province”), with the District Court in
Clark County, Nevada. The Complaint
asserted that Placer Dome Inc. was responsible for alleged environmental
degradation with consequent economic damages and impacts to the environment in
the vicinity of the Marcopper mine that was owned and operated by Marcopper
Mining Corporation (“Marcopper”). Placer
Dome Inc. indirectly owned a minority shareholding of 39.9% in Marcopper until
the divestiture of its shareholding in 1997.
“The Province sought “to recover damages for injuries to the
natural, ecological and wildlife resources within its territory”. In addition, the Province sought compensation
for the costs of restoring the environment, an order directing Placer Dome Inc.
to undertake and complete “the remediation, environmental cleanup, and
balancing of the ecology of the affected areas,” and payment of the costs of
environmental monitoring. The Complaint
addressed the discharge of mine tailings into Calancan Bay, the 1993
Maguila-guila dam breach, the 1996 Boac river tailings spill, and alleged past
and continuing damage from acid rock drainage.
“The action was removed to the U.S. District Court for the
District of Nevada on motion of Placer Dome Inc. After the amalgamation of Placer Dome Inc.
and the Company (Barrick Gold Corporation), the Court granted the Province’s
motion to join the Company as an additional named Defendant. In June 2007, the Court issued an order
granting the Company’s motion to dismiss on grounds of forum non conveniens
(improper choice of forum). In September
2009, the U.S. Court of Appeals for the Ninth Circuit reversed the decision of
the District Court on the ground that the U.S. District Court lacked subject
matter jurisdiction over the case and removal from the Nevada state court was
improper.
“In April 2010, the
Company filed a motion to dismiss the claims in the Nevada state court on the
grounds of forum non conveniens and on October 12, 2010, the court issued an
order granting the Company’s motion to dismiss the action. On February 11, 2011, the Court issued its
written reasons for the dismissal order.
On March 11, 2011, the Province filed a motion to reconsider the Court’s
order, which the Company opposed on March 28, 2011.”
(On November 15, 2011 an appeal to the Court was filed by the
contending parties to allow them to pursue settlement citing among others that
"the Parties are now in settlement discussions that they anticipate may
lead to a resolution of this matter"; that the Court will be kept informed
"whether the Parties settle the matter such that the case may be
dismissed, or whether at some point settlement efforts cease and the stay should
be lifted". The Court issued an order on December 5, 2011, granting the
stipulated motion for stay so that "they may continue working on
settlement negotiations that might lead to resolution" and suspending the
briefing schedule.)
