Case Digest (G.R. No. 135190)
Facts:
Southeast Mindanao Gold Mining Corporation v. Balite Portal Mining Cooperative and Others; and the Honorable Antonio Cerilles, in his capacity as Secretary of the Department of Environment and Natural Resources (DENR), Provincial Mining Regulatory Board of Davao (PMRB-Davao), G.R. No. 135190, April 03, 2002, First Division, Ynares‑Santiago, J., writing for the Court.The dispute arises from the Diwalwal Gold Rush Area in Mt. Diwata (Monkayo and Cateel, Davao del Norte). From 1985 to 1991 thousands descended on Diwalwal staking claims, producing lawlessness and environmental and safety problems. On March 10, 1988, Marcopper Mining Corporation obtained Exploration Permit No. 133 (EP No. 133) covering 4,491 hectares that included Diwalwal; Marcopper’s claim was earlier upheld against Apex Mining Corporation in Apex Mining Co., Inc. v. Hon. Cancio C. Garcia (G.R. No. 92605, 1991).
Congress enacted R.A. No. 7076 (the People’s Small‑Scale Mining Act) on June 27, 1991, creating the Provincial Mining Regulatory Board (PMRB) and authorizing small‑scale mining programs. Pursuant to Proclamation No. 369 and DENR authority, DENR Secretary Factoran issued DAO No. 66 on December 21, 1991, declaring 729 hectares of Diwalwal non‑forest and open to small‑scale mining. A petition to cancel EP No. 133 (RED Mines Case No. 8‑8‑94, Rosendo Villaflor, et al. v. Marcopper) was filed before the DENR Regional Executive Director.
On February 16, 1994, Marcopper assigned EP No. 133 to petitioner Southeast Mindanao Gold Mining Corporation (SEM), which applied for an integrated Mineral Production Sharing Agreement (MPSA). The Mines and Geosciences Bureau (MGB‑XI) registered SEM’s application; several parties filed oppositions (listed in the record). After enactment of R.A. No. 7942 (the Philippine Mining Act of 1995), the MAC cases were referred to a Regional Panel of Arbitrators (RPA); the RED Mines case was consolidated with them.
On April 1, 1997, the PMRB‑Davao adopted Resolution No. 26, authorizing issuance of ore transport permits (OTPs) to small‑scale miners. On May 30, 1997, SEM filed a complaint for damages in the Regional Trial Court of Makati (Branch 61) against the DENR Secretary and PMRB‑Davao, alleging that OTPs facilitated extraction and hauling of ore from SEM’s claim.
On June 13, 1997, the RPA issued an Omnibus Resolution reiterating the validity of EP No. 133 and dismissing adverse claims. On June 24, 1997, DENR Secretary issued Memorandum Order No. 97‑03 directing studies on the feasibility of “direct state utilization” of Diwalwal mineral resources and other options (including possible management/operating agreements and profit‑sharing with small‑scale miners). On July 16, 1997, SEM filed a special civil action (certiorari, prohibition and mandamus) in the Court of Appeals (CA‑G.R. SP No. 44693) seeking to annul MO 97‑03 as impairing its vested rights under EP No. 133 and as usurping RPA jurisdiction.
While these matters were pending, the Mines Adjudication Board (MAB) on January 6, 1998 set aside the RPA judgment; the MAB decision was elevated to the Supreme Court as consolidated G.R. Nos. 132475 and 132528 (later referred to the Court of Appeals by Supreme Court resolution dated September 11, 2000). On March 19, 1998, a five‑member division of the Court of Appeals (3–2) dismissed SEM’s petition, holding that MO 97‑03 merely directed studies and did not adopt direct state utilization as policy, and that the petition was premature; the CA also held that EP No. 133 was not inviolable and that issues on the validity o...(Subscriber-Only)
Issues:
- Was SEM’s petition here premature and therefore non‑justiciable because Memorandum Order No. 97‑03 merely directed studies, not the adoption of a final policy?
- Did Memorandum Order No. 97‑03 unlawfully impair SEM’s alleged vested rights under Exploration Permit No. 133?
- Is the question on the validity of ore transport permits (OTPs) vested exclusively in the Regional Panel of Arbitrators such that the...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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