Case Summary (G.R. No. 226176)
Factual Background
Macroasia Corporation obtained MPSA No. 220-2005-IVB in December 2005 following conversion of prior mining leases and proceeded with exploration and pursuit of commercial development. Macroasia sought permits from the Mines and Geosciences Bureau which required endorsement to NCIP for the conduct of the FPIC process and for issuance of a Certification Precondition. NCIP issued a Certificate of Compliance on March 17, 2006 certifying completion of the mandatory FBI and related procedures. In March 2010 the NCIP Regional Office directed conduct of the FPIC with respect to the Pala’wan Indigenous Cultural Communities/Indigenous Peoples of Barangays Ipilan, Mambalot, and Maasin. On April 21, 2010 Pala’wan leaders of those barangays issued a Joint Resolution of Consent and executed a Memorandum of Agreement with Macroasia. The FPIC Team recommended issuance of the Certification Precondition. The NCIP Regional Review Team recommended additional validation and securing of consent from indirectly affected barangays. A Validation Team constituted by the NCIP Chairperson recommended issuance of the Certification Precondition. The NCIP En Banc, however, issued Resolution No. 001-2012 denying issuance of the Certification Precondition on the ground that separate FBIs were required for the two indirectly affected barangays, Barangay Aribungos and Barong-barong.
Procedural History in the Courts Below
Macroasia elevated the matter to the Court of Appeals via a petition for review docketed as CA-G.R. SP No. 124632. The CA issued a Decision dated April 22, 2015 and thereafter an Amended Decision dated March 14, 2016 directing NCIP to issue a Certification Precondition in favor of Macroasia Corporation. NCIP sought reconsideration of the CA’s Amended Decision, which the CA denied in a Resolution dated August 9, 2016. NCIP then filed a Petition for Review on Certiorari under Rule 45, Rules of Court with the Supreme Court docketed as G.R. No. 226176 seeking to reverse the CA’s Amended Decision and to reinstate the CA Decision of April 22, 2015.
Post-CA Developments and Assignment
On June 7, 2019 Macroasia Corporation assigned all rights, title, interests, and obligations under MPSA No. 220-2005-IVB covering 1,114 hectares in Barangays Ipilan, Mambalot and Maasin to Macroasia Mining Corporation. The DENR Secretary approved the assignment pursuant to Section 46, DENR Administrative Order No. 21-10 on February 1, 2021. Macroasia Mining thereafter initiated and completed the FPIC process for the indirectly affected barangays, Barangay Aribungos and Barong-barong, in August 2022, culminating in execution of a Memorandum of Agreement and related local instruments affirming consent.
The Parties’ Agreement to Compromise
Macroasia Mining, acting as assignee and lawful representative of Macroasia Corporation, and NCIP negotiated a comprehensive settlement of the pending Supreme Court case and of all related issues. The parties executed a Compromise Agreement dated February 1, 2023. The agreement explicitly acknowledged prior proceedings, the issuance and findings of the various FPIC and FBI processes, and the validation by NCIP provincial and regional offices. It recorded that the ICCs/IPs of the three directly impacted barangays and the two indirectly affected barangays issued joint resolutions of consent and that the directly affected barangays issued a Pinagkaisang Pahayag dated November 12, 2022 affirming continued approval and support for mining activities. The agreement further recorded Macroasia Mining’s ongoing community support during the pandemic.
Material Terms of the Compromise Agreement
The parties agreed that Macroasia Mining would continue to secure all necessary permits under applicable mining laws, rules and regulations. NCIP agreed to continue reviewing Macroasia Mining’s processes and to provide orders, comments, and recommendations for compliance. The parties covenanted to execute and file a Joint Motion for Judgment based on the Compromise Agreement with the Supreme Court and to perform all acts necessary to obtain approval and to close any controversy. The parties also jointly agreed to move for the dismissal with prejudice of G.R. No. 226176 and to consider that case closed and terminated upon approval of the Compromise Agreement. The agreement contained representations that it was executed freely and voluntarily and with counsel present.
Motions Submitted to the Supreme Court and OSG Participation
Macroasia filed a Joint Motion to Render Judgment Based on Compromise Agreement dated February 21, 2023 and attached the Compromise Agreement. The Office of the Solicitor General, acting on behalf of NCIP, filed a Manifestation and Motion dated March 30, 2023 formally joining Macroasia’s motion and manifesting that the parties had resolved their differences and agreed to amicably settle the case. The motions requested that the Supreme Court declare the case closed and terminated based on the submitted Compromise Agreement.
Ruling of the Supreme
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Case Syllabus (G.R. No. 226176)
Parties and Procedural Posture
- Petitioners filed a Petition for Review on Certiorari under Rule 45, Rules of Court seeking to reverse the CA Amended Decision dated March 14, 2016 and Resolution dated August 9, 2016 and to reinstate the CA Decision dated April 22, 2015.
- Respondent Macroasia Corporation filed a Joint Motion to Render Judgment Based on Compromise Agreement dated February 21, 2023 stating that the parties had amicably settled the case.
- The Office of the Solicitor General, on behalf of NCIP, joined in the Joint Motion by Manifestation and Motion dated March 30, 2023.
- The Supreme Court granted the Joint Motion, approved and adopted the Compromise Agreement, and declared the case closed and terminated.
- The Decision was penned by Justice Rosario, J., with Gesmundo, C.J. (Chairperson), Hernando, Zalameda, and Marquez, JJ., concurring.
Key Factual Allegations
- Macroasia Corporation was issued MPSA No. 220-2005-IVB in December 2005 covering 1,114 hectares in Barangays Ipilan, Mambalot, and Maasin, Municipality of Brooke's Point, Palawan.
- Macroasia Corporation conducted exploration and applied for mining and development permits which required a Certification Precondition and the conduct of the Free and Prior Informed Consent (FPIC) process.
- An NCIP Certificate of Compliance was issued on March 17, 2006 certifying compliance with procedures including the Field Based Investigation (FBI).
- The NCIP Regional Office directed an FPIC process in March 2010 involving the Pala'wan ICCs/IPs of Barangays Ipilan, Mambalot, and Maasin which produced a Joint Resolution of Consent and a Memorandum of Agreement on April 21, 2010.
- A Regional Review Team (RRT) and a Validation Team were constituted and recommended issuance of the Certification Precondition, but the NCIP En Banc issued Resolution No. 001-2012 denying the Certification Precondition on the ground that separate FBI was required for two indirectly affected barangays, Aribungos and Barong-barong.
- Macroasia Corporation moved for reconsideration of the NCIP En Banc denial but was denied on February 23, 2012, and then elevated the matter to the Court of Appeals docketed as CA G.R. SP No. 124632.
- On March 14, 2016, the Court of Appeals issued an Amended Decision directing NCIP to issue the Certification Precondition, and NCIP's motion for reconsideration was denied on August 9, 2016.
- Macroasia Corporation assigned its rights and interests under the MPSA to Macroasia Mining on June 7, 2019, and Section 46 of DENR Administrative Order No. 21-10 reflects the Secretary of the DENR approval of that assignment on February 1, 2021.
- Macroasia Mining conducted a separate FBI/FPIC for Barangays Aribungos and Barong-barong in August 2022 culminating in agreements and a Pinagkaisang Pahayag dated November 12, 2022 affirming approval and support for mining activities.
Administrative and Statutory Framework
- R.A. 8371 served as the enabling law cited for the existence and mandate of NCIP.
- The MPSA regime and administrative issuances of the DENR governed the assignment and approval of mining rights, including Section 46 of DENR Administrative Order No. 21-10.
- The FPIC requirement and the conduct of an FBI were treated as prerequisites for issuance of the Certification Precondition under NCIP practice and policy.
- The parties referenced NCIP En Banc Resolution No. 001-2012 as determinative of NCIP's prior administrative decision denying the Certification Precondition.
Prior Proceedings
- Macroasia Corporation petitioned the Court of Appeals challenging NCIP's denial and obtained an Amended Decision dated March 14, 2016 directing issuance of the Certification Precondition.
- NCIP sought reconsideration in the Court of Appeals, which was denied by Resolution dated August 9, 2016.
- NCIP thereafter filed the present Petition for Review on C