Case Summary (G.R. No. 125687)
Factual Antecedents
On March 9, 2006, the mining corporations were granted two-year Small-Scale Mining Permits (SSMP) by the Provincial Mining Regulatory Board of Agusan del Norte. This allowed them to extract nickel and cobalt (Ni-Co) from a 20-hectare mining site in Sitio Bugnang, Barangay La Fraternidad, Tubay, Agusan del Norte. The Environmental Management Bureau (EMB) issued Environmental Compliance Certificates (ECCs) on March 2, 2006, stipulating that the corporations could not exceed an annual extraction limit of 50,000 metric tons (MT) of ore, following Section 1 of Presidential Decree (PD) No. 1899.
Despite earlier compliance, Governor Erlpe John M. Amante raised concerns regarding potential over-extraction by the corporations. The corporations refuted these claims, arguing that the mass extracted consisted of both economically valuable Ni-Co and gangue (non-valuable materials), and asserted they had only extracted 1,699.66 MTs of Ni-Co until December 2006.
Regulatory Developments and Legal Opinions
Concerns about the mining corporations' practices prompted the Governor to seek legal guidance from the Department of Justice (DOJ). The DOJ's opinion suggested that Section 1 of PD 1899 might be impliedly repealed by the subsequent Republic Act (RA) No. 7076, which defines small-scale mining without imposing an annual production limit.
The EMB later issued a Notice of Violation, indicating the corporations had exceeded their allowed production based on an inspection report claiming a stockpile of 177,297 dry metric tons of Nickeliferous ore. Consequently, on November 26, 2006, DENR Secretary Reyes issued a Cease and Desist Order (CDO) against the corporations for exceeding extraction limits stipulated in the permits.
Court of Appeals' Ruling
The mining corporations filed a Petition for Certiorari against the CDO, arguing that DENR had acted with grave abuse of discretion. The Office of the Solicitor General contended that the CDO was a necessary preventive measure for environmental protection. The Court of Appeals (CA) ultimately denied the mining corporations' petition, affirming the DENR's authority under Executive Order 192 to manage the nation’s natural resources effectively and to issue the CDO based on its findings.
Issues Presented
Two core issues were presented: the constitutionality of Section 1 of PD 1899 in relation to the equal protection clause, and the correct interpretation of the 50,000-MT production limit. The mining corporations argued that the extraction limitation imposed under PD 1899 created unfair discrimination compared to operators regulated under RA 7076, who were permitted to extract without limitation.
Court's Rulings
The Court held that both PD 1899 and RA 7076 coexist and govern different facets of small-scale mining regulation. It determined that Section 1 of PD 1899, which explicitly states a 50,000-MT annual limit, remains enforceable. Although supporting the D
...continue readingCase Syllabus (G.R. No. 125687)
Background of the Case
- This case is a Petition for Review on Certiorari filed by SR Metals, Inc., SAN R Mining and Construction Corp., and Galeo Equipment and Mining Co., Inc. (collectively referred to as 'mini corporations').
- The petitioners contest the Decision and Resolution of the Court of Appeals (CA) dated July 4, 2007, and September 14, 2007, in CA-G.R SP No. 97127, which upheld the validity of certain provisions of relevant mining laws and regulations.
- The mining corporations challenge two main issues:
- The constitutionality of the 50,000 metric tons (MT) limit imposed by Presidential Decree (PD) No. 1899 on small-scale mining operations, asserting it violates the equal protection clause.
- The interpretation of what constitutes 'ore' under the law, which they argue was misapplied by the CA leading to a conclusion of over-extraction.
Factual Antecedents
- On March 9, 2006, the petitioners were granted 2-year Small-Scale Mining Permits (SSMP) to extract Nickel and Cobalt (Ni-Co) from a designated mining site in Sitio Bugnang, Brgy. La Fraternidad, Tubay, Agusan del Norte.
- Environmental Compliance Certificates (ECC) were issued on March 2, 2006, which included a stipulation that the annual extraction should not exceed 50,000 MTs of Ni-Co ore.
- Concerns arose when Agusan del Norte Governor, Erlpe John M. Amante, questioned the quantity of ore extracted by the mining corporations, leading to a Notice of Violation from the Environmental Management Bureau (EMB).
- The EMB's investigation revealed t