Title
Apex Mining Co., Inc. vs. Southeast Mindanao Gold Mining Corp.
Case
G.R. No. 152613 152628
Decision Date
Nov 20, 2009
MMC assigned EP 133 to SEM without DENR approval, violating mining laws. SEM's claims invalid; Proclamation No. 297 upheld, granting State control over Diwalwal. Apex prioritized over Balite.

Case Digest (G.R. No. 76265)
Expanded Legal Reasoning Model

Facts:

  • Parties and Permits
    • Petitioners and Respondents
      • Apex Mining Co., Inc. (Apex) and Balite Communal Portal Mining Cooperative (Balite) sought mining rights in Diwalwal Gold Rush Area.
      • Southeast Mindanao Gold Mining Corporation (SEM), Mines Adjudication Board (MAB), Provincial Mining Regulatory Board (PMRB-Davao), various small-scale miners and cooperatives participated as respondents or intervenors.
    • Key Permits and Transactions
      • Marcopper Mining Corp. (MMC) was granted Exploration Permit (EP) 133 on March 10, 1986 (expires July 6, 1994).
      • On February 16, 1994, MMC assigned EP 133 to SEM without DENR Secretary’s prior approval and in breach of a permit condition limiting use to MMC or its duly authorized agents.
  • Administrative and Judicial Proceedings
    • Panel of Arbitrators (PA) and MAB
      • PA (1997) upheld EP 133, dismissed adverse claims against SEM’s MPSA application.
      • MAB (1998) vacated PA, deemed EP 133 expired/non-subsisting, excluded 729 ha under DAO 66, and gave SEM partial award.
    • Court of Appeals and En Banc Resolution
      • CA (2002) reinstated EP 133 validity, recognized SEM as MMC’s agent, nullified MAB decision.
      • Presidential Proclamation No. 297 (Nov. 25, 2002) declared Diwalwal a mineral reservation (8,100 ha) under RA 7942 Sec. 5.
      • This Court en banc (2006–2009) decided motions for reconsideration by SEM, Apex, Balite and remanded issues to determine effect of EP 133 assignment, permit expiration, and Proclamation No. 297.

Issues:

  • Exploration Permit Validity and Assignment
    • Whether MMC’s assignment of EP 133 to SEM violated PD 463 and permit conditions.
    • Whether SEM acquired any vested property right in EP 133.
  • Effect of Proclamation No. 297 and RA 7942
    • Whether Proclamation 297 exceeds Presidential power or violates Art. XII, Sec. 4 (forest limits).
    • Whether SEM timely raised its constitutional challenge to Proclamation 297.
  • Rights of Apex and Balite
    • Whether Apex or Balite has priority or preferential right to explore under first-in-time, first-in-right.
    • Whether the Court can direct MGB to accept Apex’s or Balite’s pending exploration permit applications.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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