Title
La Bugal-B'laan Tribal Association, Inc. vs. Ramos
Case
G.R. No. 127882
Decision Date
Jan 27, 2004
Philippine Mining Act and FTAA upheld as constitutional; petitioners' challenge dismissed, as foreign assistance in mining complies with constitutional exceptions and national interests.

Case Digest (G.R. No. 127882)

Facts:

La Bugal-Blaan Tribal Association, Inc. v. Ramos, G.R. No. 127882, January 27, 2004, the Supreme Court En Banc, Carpio Morales, J., writing for the Court. Petitioners (various indigenous peoples’ associations, residents, and environmental NGOs) challenged the constitutionality of Republic Act No. 7942 (the Philippine Mining Act of 1995), its Implementing Rules and Regulations (DENR DAO No. 96-40), and the Financial and Technical Assistance Agreement (FTAA) executed on March 30, 1995 between the Republic and WMC (Philippines), Inc. (WMCP).

The factual and procedural background began with Executive Order No. 279 (July 25, 1987), which authorized the DENR Secretary to accept and evaluate proposals from foreign-owned corporations for large-scale mineral projects. On March 3, 1995, R.A. No. 7942 was enacted to govern mineral exploration, development and utilization; its implementing rules were issued first by DAO No. 95-23 (1995) and later repealed and replaced by DAO No. 96-40 (1996). On March 30, 1995 the President entered into the WMCP FTAA covering a large contract area in Mindanao.

After publication and effectivity of R.A. No. 7942, petitioners sent a demand to the DENR (January 10, 1997) to stop implementation of the Act and its DAO; receiving no response, they filed a petition for mandamus and prohibition in the Supreme Court, alleging among other grounds that (1) the Act and DAO permit wholly foreign-owned corporations effectively to operate and manage Philippine mineral resources contrary to Article XII, Sec. 2 of the 1987 Constitution, and (2) the WMCP FTAA (entered pursuant to E.O. 279) is illegal and unconstitutional. They sought injunctive relief, declaration of unconstitutionality of the Act and DAO, and cancellation of the FTAA.

Respondents defended on procedural grounds (standing, hierarchy of courts, timeliness) and on the merits. WMCP later manifested (Sept. 25, 2002) that WMC had sold its WMCP shares to Sagittarius Mines, Inc., a Philippine corporation (allegedly at least 60% Filipino-owned), and that the FTAA had been transferred and registered to Sagittarius with DENR approval and with an Office of the President decision upholding the transfer; Lepanto contested that transfer in administrative and judicial forums. The Supreme Court granted due course to the petition, received memoranda, and addressed both procedural requisites and the substantive constitutionality of E.O. 279, R.A. No. 7942 (especially its FTAA provisions), DAO No. 96-40, and the WMCP FTAA. The Court limited ...(Subscriber-Only)

Issues:

  • Do petitioners have an actual case and personal and substantial interest (standing) and is the petition for prohibition and mandamus proper and within the Court’s original jurisdiction despite the rule on hierarchy of courts?
  • Did Executive Order No. 279 lawfully take effect and thereby provide a valid basis for the FTAA executed under it?
  • Whether R.A. No. 7942, DAO No. 96-40, and the WMCP FTAA violate Article XII, Section 2 of the 1987 Constitution by permitting foreign-owned corporations effectively to manage, operate, or “enjoy” Philippine mineral res...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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