Case Digest (G.R. No. 141970)
Facts:
In the case of SR Metals, Inc., SAN R Mining and Construction Corp., and Galeo Equipment and Mining Company, Inc. v. Hon. Angelo T. Reyes, the petitioners, referred to broadly as “mini corporations”, challenged the validity of certain provisions of Presidential Decree (PD) No. 1899. On March 9, 2006, these corporations were granted a two-year Small-Scale Mining Permit (SSMP) by the Provincial Mining Regulatory Board of Agusan del Norte, allowing them to extract Nickel and Cobalt in a specified mining area of 20 hectares located in Sitio Bugnang, Brgy. La Fraternidad, Tubay, Agusan del Norte. Collectively, the Environmental Management Bureau (EMB) issued Environmental Compliance Certificates (ECCs) on March 2, 2006, which limited their extraction to a maximum of 50,000 metric tons (MT) of mineral ore annually, consistent with Section 1 of PD 1899. This law defined small-scale mining as operations with such production limitations.The affairs of the corporations came under scruti
Case Digest (G.R. No. 141970)
Facts:
- Grant of Small-Scale Mining Permits: On March 9, 2006, SR Metals, Inc., SAN R Mining and Construction Corp., and Galeo Equipment and Mining Co., Inc. (petitioners) were awarded 2-year Small-Scale Mining Permits (SSMPs) by the Provincial Mining Regulatory Board of Agusan del Norte. These permits allowed them to extract Nickel and Cobalt (Ni-Co) from a 20-hectare mining site in Tubay, Agusan del Norte. The Environmental Compliance Certificates (ECCs) issued to them restricted their annual extraction to 50,000 metric tons (MT) of Ni-Co ore, pursuant to Section 1 of Presidential Decree (PD) No. 1899.
- Alleged Over-Extraction: Governor Erlpe John M. Amante of Agusan del Norte questioned the quantity of ore mined and shipped by the petitioners. The petitioners denied exceeding the 50,000-MT limit, arguing that the extracted mass contained only a limited amount of Ni-Co, with the rest being gangue (unwanted rocks and minerals). They claimed that only 1,699.66 MTs of Ni-Co ore had been extracted.
- Notice of Violation: The Environmental Management Bureau (EMB) issued a Notice of Violation to the petitioners, stating that their stockpile inventory of Nickeliferous ore had reached 177,297 dry metric tons (DMT), exceeding the allowed limit. A technical conference was held to address the alleged over-extraction.
- Cease and Desist Order (CDO): On November 26, 2006, DENR Secretary Angelo T. Reyes issued a CDO against the petitioners, suspending their operations for exceeding the annual production limit and other violations. The CDO also declared the ECCs and SSMPs of two petitioners null and void.
- DOJ Opinion: On November 30, 2006, the Department of Justice (DOJ) issued an opinion stating that Section 1 of PD 1899, which imposes the 50,000-MT limit, was impliedly repealed by Republic Act (RA) No. 7076. The DOJ also opined that the term "ore" should be confined to Ni-Co, excluding gangue.
- Petition to the Court of Appeals: The petitioners filed a Petition for Certiorari before the Court of Appeals (CA), challenging the CDO and arguing that the 50,000-MT limit was unconstitutional and that their extraction did not exceed the limit. The CA upheld the CDO, ruling that the 50,000-MT limit applied to run-of-mine ore, including gangue.
Issues:
- Constitutionality of PD 1899: Whether Section 1 of PD 1899, which imposes a 50,000-MT annual production limit on small-scale mining, violates the equal protection clause of the Constitution.
- Interpretation of the 50,000-MT Limit: Whether the 50,000-MT limit applies only to the Ni-Co component of the extracted ore or to the entire run-of-mine ore, including gangue.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)