Celestial Mining Case
-
Upload
kara-russanne -
Category
Documents
-
view
213 -
download
0
Transcript of Celestial Mining Case
-
8/12/2019 Celestial Mining Case
1/38
Republic of the Philippines
SUPREME COURT
Manila
SECOND DIVISION
CELESTIAL NICKEL MINING G.R. No. 169080
EXPLORATION CORPORATION,
Petitioner,
Present:
!ersus
"UISUM#IN$,J., Chairperson,
C%RPIO MOR%&ES,
MACROASIA CORPORATION TIN$%,(formerly INANTA MINERAL AN! VE&%SCO, 'R(, an)
IN!"STRIAL CORPORATION#, C*ICON%+%RIO,JJ.
$L"E RI!GE MINERAL
CORPORATION, %&' LE$AC
MINING CORPORATION,
Respon)ents(
- -
$L"E RI!GE MINERAL G.R. No. 1)*9+6
CORPORATION,
Petitioner,
!ersus
ON. ANGELO REES -& -/
%%-2y %/ SECRETAR of
2e !EPARTMENT OEN3IRONMENT AN! NAT"RAL Pro.ul/ate):
RESO"RCES, ON. G"ILLERMO
ESTA$ILLO -& -/ %%-2y %/
REGIONAL !IRECTOR of 2e Dece.ber 01, 2334
MINES AN! GEOSCIENCES
$"REA", REGION I34$ of 2e
!EPARTMENT O EN3IRONMENT
AN! NAT"RAL RESO"RCES, %&'
MACROASIA CORPORATION(formerly INANTA MINERAL AN!
IN!"STRIAL CORPORATION#,
Respon)ents(
- -
-
8/12/2019 Celestial Mining Case
2/38
CELESTIAL NICKEL MINING G.R. No. 1)6**6
EXPLORATION CORPORATION,
Petitioner,
!ersus
$L"E RI!GE MINERAL
CORPORATION %&' MACROASIA
CORPORATION (formerly INANTA
MINERAL AN! IN!"STRIAL
CORPORATION#,
Respon)ents(
- -
MACROASIA CORPORATION G.R. No. 1)6+19
(formerly INANTA MINERAL AN!
IN!"STRIAL CORPORATION#,
Petitioner,
!ersus
$L"E RI!GE MINERALCORPORATION %&' CELESTIAL
NICKEL MINING EXPLORATION
CORPORATION,
Respon)ents(
--
! E C I S I O N
3ELASCO, 5R.,J.
Te C%/e
#efore us are four 567 petitions( The first is a Petition for Re!ie8 on
Certiorari0un)er Rule 69 )ocete) as G.R. No. 169080, 8herein petitioner
Celestial Nicel Minin/ E-ploration Corporation 5Celestial7 sees to set
asi)e the %pril 09, 2339 Decision2of the Court of %ppeals 5C%7 in C%$(R(
SP No( ;41u)ication #oar) 5M%#7 in M%# Case Nos( 39=14 an) 39414
0 Per October 26, 2334 raffle(
Rollo5$(R( No( 0=13;37, pp( 1;4(2 I)( at ;103;( Penne) b? %ssociate 'ustice Martin S( Villara.a 5Chairperson7 an) concurre) in b?
%ssociate 'ustices Re/ala)o E( Maa.bon/ an) &ucenito N( Ta/le(
-
8/12/2019 Celestial Mining Case
3/38
5DENR Case Nos( 1430 an) 14327, uphol)in/ the authorit? of the
Depart.ent of En!iron.ent an) Natural Resources 5DENR7 Secretar? to
/rant an) cancel .ineral a/ree.ents( %lso assaile) is the %u/ust
-
8/12/2019 Celestial Mining Case
4/38
Resolutions, 8e consoli)ate) the four cases as the? arose fro. the sa.e
facts(
The un)ispute) facts as foun) b? the C% in C%$(R( SP No( ;41ect
.inin/ lease contracts an) other .inin/ clai.s of Macroasia inclu)in/ those
co!ere) b? Minin/ &ease Contract No( V0393, before the Panel of
%rbitrators 5PO%7 of the Mines an) $eoSciences #ureau 5M$#7 of the
DENR( The petition 8as )ocete) as DENR Case No( 1430(
#lue Ri)/e, in an earlier letterpetition, also 8rote the Director of
Mines to see cancellation of .inin/ lease contracts an) other .inin/ ri/hts
-
8/12/2019 Celestial Mining Case
5/38
of Macroasia an) another entit?, &ebach Minin/ Corporation 5&ebach7, in
.inin/ areas in #rooe@s Point( The petition 8as e!entuall? )ocete) as
DENR Case No( 1432(
Celestial is the assi/nee of 066 .inin/ clai.s co!erin/ such areas
conti/uous to Infanta@s 5no8 Macroasia7 .inin/ lo)e clai.s( Sai) area 8as
in!ol!e) in protracte) a).inistrati!e )isputes 8ith Infanta 5no8 Macroasia7,
&ecar Sons, Inc(, an) Pala8an Nicel Minin/ Corporation( Celestial also
hol)s an MPS% 8ith the /o!ern.ent 8hich co!ers 2,;ect the .inin/ areas to co..ercial pro)uction an) 547 the
8illin/ness of Celestial to pa? fees an) bac ta-es of Macroasia(
In the later part of the procee)in/s, Macroasia inter!ene) in the case
an) sub.itte) its position paper refutin/ the /roun)s for cancellation
in!oe) b? Celestial(00
Te R7l-& of 2e P%&el of Ar-2r%2or/ -&
!ENR C%/e No/. 9)401 %&' 9)40*
#ase) on the recor)s of the #ureau of Mines an) fin)in/s of the fiel)
in!esti/ations, the PO% foun) that Macroasia an) &ebach not onl?
00Rollo5$(R( No( 0=13;37, pp( ;110(
-
8/12/2019 Celestial Mining Case
6/38
-
8/12/2019 Celestial Mining Case
7/38
rulin/ in Medrana v. Office of the President 5OP7,0=the M%# affir.e) the
PO% fin)in/s that Macroasia aban)one) its .inin/ clai.s( The M%# foun)
that Macroasia )i) not co.pl? 8ith its 8or obli/ations fro. 01;= to 0110(
It base) its conclusion on the fiel) !erifications con)ucte) b? the M$#,
Re/ion IV an) !ali)ate) b? the Special Tea. tase) b? the M%#(04
*o8e!er, contrar? to the fin)in/s of the PO%, the M%# foun) that it 8as
#lue Ri)/e that ha) prior an) preferential ri/hts o!er the .inin/ clai.s of
Macroasia, an) not Celestial(
Thus, on October 26, 2333, the M%# pro.ul/ate) its Decision
uphol)in/ the Decision of the PO% to cancel the Minin/ &o)e&ease
Contracts of Macroasia )eclarin/ aban)one) the sub>ect .inin/ clai.s an)
openin/ the .inin/ area 8ith prior an) preferential ri/hts to #lue Ri)/e for
.inin/ applications, sub>ect to strict co.pliance 8ith the proce)ure an)
reBuire.ents pro!i)e) b? la8( In case #lue Ri)/e )efaults, Celestial coul)
e-ercise the secon)ar? priorit? an) preferential ri/hts, an) subseBuentl?, in
case Celestial also )efaults, other Bualifie) applicants coul) file(0;
#oth Celestial an) Macroasia .o!e) for reconsi)eration(01 Celestial
asserte) that it ha) better ri/hts than #lue Ri)/e o!er the .inin/ clai.s of
Macroasia as it ha) correctl? file) its petition, an) file) its MPS%
application after Macroasia@s lease contract e-pire) on 'anuar? 04, 0114 an)
after the PO%@s resolution 8as issue) on Septe.ber 0, 0114( Moreo!er, it
ar/ue) that priorit? 8as not an issue 8hen the conteste) area ha) not ?et
been )eclare) aban)one)( Thus, #lue Ri)/e@s MPS% application file) on
'une 04, 011= ha) no effect an) shoul) not be consi)ere) superior since
Macroasia@s lease contracts 8ere still !ali) an) subsistin/ an) coul) not
ha!e been cancele) b? Macroasia@s .ere failure to perfor. annual 8or
obli/ations an) pa? correspon)in/ ro?altiesta-es to the /o!ern.ent(
0=$(R( No( ;9136, %u/ust 20, 0113, 0;; SCR% ;0;(04 SeeSepte.ber 09, 0111 Me.oran)u. fro. Tas orce Tea. &ea)er Rolan)o PeJa to the
Chair.an of M%#, rollo5$(R( No( 0=13;37, p( 616, on the Report b? Tas orce Create) to In!esti/ate the
%rea Sub>ect of M%# Case Nos( 39=14 an) 39414 at #rooe@s Point, Pala8an, i)( at 61993
-
8/12/2019 Celestial Mining Case
8/38
Macroasia, in its Motion for Reconsi)eration, reiterate) that it )i) not
aban)on its .inin/ clai.s, an) e!en if .inin/ 8as not liste) a.on/ its
purposes in its a.en)e) %rticles of Incorporation, its .inin/ acti!ities 8ere
acts that 8ere onl? ultra viresbut 8ere ratifie) as a secon)ar? purpose b? its
stochol)ers in subseBuent a.en).ents of its %rticles of Incorporation(
#efore the M%# coul) resol!e the .otions for reconsi)eration, on
March 0=, 2330, Macroasia file) its Supple.ental Motion for
Reconsi)eration23 Buestionin/ the >uris)iction of the PO% in cancelin/
.inin/ lease contracts an) .inin/ clai.s( Macroasia a!erre) that the po8er
an) authorit? to /rant, cancel, an) re!oe .ineral a/ree.ents is e-clusi!el?
lo)/e) 8ith the DENR Secretar?( Macroasia further pointe) out that in
arro/atin/ upon itself such po8er, the PO% 8hi.sicall? an) capriciousl?
)iscar)e) the proce)ure on confer.ent of .inin/ ri/hts lai) )o8n in
Republic %ct No( 5R%7 4162, The Philippine Mining Act of 1995, an) DENR
%).inistrati!e Or)er No( 5%O7 1=63,20an) perfunctoril? an) i.properl?
a8ar)e) its .inin/ ri/hts to #lue Ri)/e an) Celestial(
SubseBuentl?, on No!e.ber 2=, 2336, the M%# issue) a Resolution 22
!acatin/ its October 26, 2333 Decision, hol)in/ that neither the PO% nor the
M%# ha) the po8er to re!oe a .ineral a/ree.ent )ul? entere) into b? the
DENR Secretar?, ratiocinatin/ that there 8as no pro!ision /i!in/ the PO%
an) M%# the concurrent po8er to .ana/e or )e!elop .ineral resources(
The M%# further hel) that the po8er to cancel or re!oe a .ineral
a/ree.ent 8as e-clusi!el? lo)/e) 8ith the DENR Secretar? that a petition
for cancellation is not a .inin/ )ispute un)er the e-clusi!e >uris)iction of
the PO% pursuant to Sec( 44 of R% 4162 an) that the PO% coul) onl?
a)>u)icate clai.s or contests )urin/ the MPS% application an) not 8hen the
clai.s an) leases 8ere alrea)? /rante) an) subsistin/(
23I)( at 24;21=(20Re!ise) I.ple.entin/ Rules an) Re/ulations of R% 4162, other8ise no8n as the Philippine
Mining Act of 1995,viceDENR %O 192
-
8/12/2019 Celestial Mining Case
9/38
Moreo!er, the M%# hel) that there 8as no aban)on.ent b?
Macroasia because the DENR Secretar? ha) not )eci)e) to release
Macroasia fro. its obli/ations( The Secretar? .a? choose not to release a
contractor fro. its obli/ations on /roun)s of public interest( Thus, throu/h
its sai) resolution, the M%# ren)ere) its )isposition, as follo8s:
A*EREORE, pre.ises consi)ere), the assaile) Decision of
October 26, 2333 is hereb? V%C%TED( The se!en 547 .inin/ leasecontracts of Macroasia Corporation 5for.erl? Infanta Mineral In)ustrial
Corporation7 are DEC&%RED SU#SISTIN$ prior to their e-pirations
8ithout pre>u)ice to an? Decision or Or)er that the Secretar? .a? ren)eron the sa.e( NO PREERENTI%& RI$*T o!er the sa.e .inin/ clai.s
is accor)e) to #lue Ri)/e Mineral Corporation or Celestial Nicel Minin/E-ploration Corporation also 8ithout pre>u)ice to the )eter.ination b? the
Secretar? o!er the .atter at the proper ti.e(2uris)iction to cancel e-istin/ .ineral a/ree.ents
un)er R% 4162 in relation to PD 6=< an) pertinent rules an) re/ulations(
G.R. No/. 169080, 1)6**6 %&' 1)6+19
Ae 8ill >ointl? tacle $(R( Nos( 0=13;3, 04=2==, an) 04=
-
8/12/2019 Celestial Mining Case
16/38
that if no a)!erse clai. 8as file) 8ithin 5097 )a?s after the first )ate of
publication, it 8as conclusi!el? presu.e) that no a)!erse clai. e-iste) an)
thereafter no ob>ection fro. thir) parties to the /rant of the lease coul) be
hear), e-cept protests pen)in/ at the ti.e of publication( The Secretar?
8oul) then appro!e an) issue the correspon)in/ .inin/ lease contract( In
case of an? protest or a)!erse clai. relatin/ to an? .inin/ clai. an) lease
application, Secs( 6; an) 93 of PD 6=< prescribe) the proce)ure( Un)er Sec(
6;, the protest shoul) be file) 8ith the #ureau of Mines( Un)er Sec( 93, an?
part? not satisfie) 8ith the )ecision or or)er of the Director coul), 8ithin
fi!e 597 )a?s fro. receipt of the )ecision or or)er, appeal to the Secretar?(
The )ecisions of the Secretar? 8ere lie8ise appealable 8ithin fi!e 597 )a?s
fro. receipts b? the affecte) part? to the Presi)ent of the Philippines 8hose
)ecision shall be final an) e-ecutor?( PD 6=< 8as, ho8e!er, silent as to 8ho
8as authoriGe) to cancel the .ineral a/ree.ents(
On 'ul? 03, 01;4, Presi)ent CoraGon C( %Buino issue) E-ecuti!e
Or)er No( 5EO7 200( Un)er Sec( 2 of EO 200, the processin/, e!aluation,
an) appro!al of all .inin/ applications, )eclarations of locations, operatin/
a/ree.ents, an) ser!ice contracts 8ere /o!erne) b? PD 6=
-
8/12/2019 Celestial Mining Case
17/38
contracts to the Presi)ent(66 EO 241 pro!i)e) that PD 6=< an) its
i.ple.entin/ rules an) re/ulations, 8hich 8ere not inconsistent 8ith EO
241, continue) in force an) effect(69 %/ain, EO 241 8as silent on the
authorit? to cancel .ineral a/ree.ents(
R% 4162, ThePhilippine Mining Act of 1995 enacte) on March
-
8/12/2019 Celestial Mining Case
18/38
>uris)iction to hear an) )eci)e on the follo8in/:
5a7 !-/72e/ -&=ol=-& r-2/ 2o m-&-& %re%/
5b7 !-/72e/ -&=ol=-& m-&er%l %reeme&2/ or erm-2/
5c7 Disputes in!ol!in/ surface o8ners, occupants an)
clai.hol)ersconcessionaires an)
5)7 Disputes pen)in/ before the #ureau an) the Depart.ent at the
)ate of the effecti!it? of this %ct(
SEC( 4;. Appellate Jurisdiction(The )ecision or or)er of the panel ofarbitrators .a? be appeale) b? the part? not satisfie) thereto to the Mines
%)>u)ication #oar) 8ithin fifteen 5097 )a?s fro. receipt thereof 8hich
.ust )eci)e the case 8ithin thirt? 5u)ication #oar)shall be co.pose) of three 5
-
8/12/2019 Celestial Mining Case
19/38
.ana/e.ent, an) control o!er .ineral resources un)er Chapter I, Title QIV
of #oo IV of the Re!ise) %).inistrati!e Co)e of 01;4, !iG:
Chapter 0$eneral Pro!isions
Section 0( 'eclaration of Polic(507 The State shall ensure, for
the benefit of the ilipino people, the full e-ploration an) )e!elop.ent as
8ell as the >u)icious )isposition, 72-l-?%2-o&, m%&%eme&2, re&e/ ol--e/, l%&/, %&' ror%m/er2%-&-& 2o 2e m%&%eme&2, o&/er=%2-o&, 'e=elome&2, 7/e %&'
rele&-/me&2 of 2e o7&2ry>/ &%27r%l re/o7re/
- - - -
567 E@er-/e /7er=-/-o& %&' o&2rol o=er forest lan)s,
alienable an) )isposable public lan)s, m-&er%l re/o7re/- - -
- - - -
5027 Re7l%2e 2e 'e=elome&2, '-/o/-2-o&, e@2r%2-o&,e@lor%2-o& %&' 7/e of 2e o7&2ry>/ fore/2, l%&',
-
8/12/2019 Celestial Mining Case
20/38
- - - -
Sec( ;( The Secretar(The Secretar? shall:
- - - -
5
-
8/12/2019 Celestial Mining Case
21/38
SEC( 21(0iling and approval of Mineral Agree(ents(- - -(
The filin/ of a proposal for a .ineral a/ree.ent shall /i!e theproponent the prior ri/ht to areas co!ere) b? the sa.e( Te roo/e'm-&er%l %reeme&2
-
8/12/2019 Celestial Mining Case
22/38
then it follo8s that Sec( 66 ser!es as basis for the DENR Secretar?@s
authorit? to cancel .ineral a/ree.ents(
Since the DENR Secretar? ha) the po8er to appro!e an) cancel
.ineral a/ree.ents un)er PD 6=
-
8/12/2019 Celestial Mining Case
23/38
.ineral ri/hts clearl? )e.onstrates the authorit? of the DENR Secretar? to
cancel or appro!e the cancellation of .ineral a/ree.ents(
Un)er Sec( 1 of R% 4162, the M$# 8as /i!en the po8er of )irect
super!ision of .ineral lan)s an) resources, thus:
Sec( 1( Authorit of the %ureau(The #ureau shall ha!e '-re2
%re -& 2e %'m-&-/2r%2-o& %&' '-/o/-2-o& of m-&er%l l%&'/ %&'
m-&er%l re/o7re/ %&' /%ll 7&'er2%e eolo-%l, m-&-&,
me2%ll7r-%l, em-%l, %&' o2er re/e%re/ %/
-
8/12/2019 Celestial Mining Case
24/38
e( To %&el or 2o reomme&' %&ell%2-o& %f2er '7eroe//, m-&-& r-2/, .inin/ applications an) .inin/ clai.s for non
co.pliance 8ith pertinent la8s, rules an) re/ulations(
It is e-plicit fro. the fore/oin/ pro!ision that the DENR Secretar?
has the authorit? to cancel .ineral a/ree.ents base) on the reco..en)ation
of the M$# Director( %s a .atter of fact, the po8er to cancel .inin/ ri/hts
can e!en be )ele/ate) b? the DENR Secretar? to the M$# Director(
Clearl?, it is the Secretar?, not the PO%, that has authorit? an) >uris)iction
o!er cancellation of e-istin/ .inin/ contracts or .ineral a/ree.ents(
6( The DENR Secretar?@s po8er to cancel .inin/ ri/hts or
a/ree.ents throu/h the M$# can be inferre) fro. Sec( 2
-
8/12/2019 Celestial Mining Case
25/38
DENR Secretar?, then the lo/ical conclusion is that it is the DENR Secretar?
8ho can cancel the .ineral a/ree.ents an) not the PO% nor the M%#(
9( Celestial an) #lue Ri)/e are not una8are of the stipulations in
the Minin/ &ease Contract Nos( V0393 an) MRD92,93the cancellation of
8hich the? sou/ht fro. the PO%( It is clear fro. sai) lease contracts that
the parties are the Republic of the Philippines represente) b? the Secretar?
of %/riculture an) Natural Resources 5no8 DENR Secretar?7 as lessor, an)
Infanta 5Macroasia7 as lessee( Para/raph 0; of sai) lease contracts pro!i)es:
Ahene!er the &ESSEE fails to co.pl? 8ith an? pro!ision of LPD6=
-
8/12/2019 Celestial Mining Case
26/38
Sec( 44 of R% 4162 la?s )o8n the >uris)iction of PO%, to
8it:
Aithin thirt? 5uris)iction to
hear an) )eci)e the follo8in/:
5a7 Disputes in!ol!in/ ri/hts to .inin/ areas
5b7 Disputes in!ol!in/ .ineral a/ree.ents or per.its
The phrase F)isputes in!ol!in/ ri/hts to .inin/ areasH refers to an?
a)!erse clai., protest, or opposition to an application for .ineral a/ree.ent(
The PO% therefore has the >uris)iction to resol!e an? a)!erse clai., protest,
or opposition to a pen)in/ application for a .ineral a/ree.ent file) 8ith the
concerne) Re/ional Office of the M$#( This is clear fro. Secs(
-
8/12/2019 Celestial Mining Case
27/38
Sec( 60(
- - - -
D-2-& f-f2ee& (1;#
-
8/12/2019 Celestial Mining Case
28/38
the concerne) offices shall issue a certification that publicationpostin/ has
been .a)e an) that no a)!erse clai., protest or opposition of 8hate!er
nature has been file)( O& 2e o2er %&', -f 2ere e %&y %'=er/e l%-m,
ro2e/2 or oo/-2-o&, 2e /%me /%ll e f-le' uris)iction is confine) onl? to resolutions of such a)!erse clai.s,
conflicts an) oppositions an) it has no authorit? to appro!e or re>ect sai)
applications( Such po8er is !este) in the DENR Secretar? upon
reco..en)ation of the M$# Director( Clearl?, PO%@s >uris)iction o!er
F)isputes in!ol!in/ ri/hts to .inin/ areasH has nothin/ to )o 8ith the
cancellation of e-istin/ .ineral a/ree.ents(
On the other han), Celestial an) #lue Ri)/e conten) that PO% has>uris)iction o!er their petitions for the cancellation of Macroasia@s lease
a/ree.ents banin/ on PO%@s >uris)iction o!er F)isputes in!ol!in/ .ineral
a/ree.ents or per.itsH un)er Sec( 44 5b7 of R% 4162(
Such position is bereft of .erit(
%s earlier )iscusse), the DENR Secretar?, b? !irtue of his po8ers as
a).inistrati!e hea) of his )epart.ent in char/e of the .ana/e.ent an)
super!ision of the natural resources of the countr? un)er the 01;4
%).inistrati!e Co)e, R% 4162, an) other la8s, rules, an) re/ulations, can
-
8/12/2019 Celestial Mining Case
29/38
cancel a .ineral a/ree.ent for !iolation of its ter.s, e!en 8ithout a petition
or reBuest file) for its cancellation, pro!i)e) there is co.pliance 8ith )ue
process( Since the cancellation of the .ineral a/ree.ent is appro!e) b? the
DENR Secretar?, then the recourse of the contractor is to ele!ate the .atter
to the OP pursuant to %O 0;, Series of 01;4 but not 8ith the PO%(
Matche) 8ith the le/al pro!isions e.po8erin/ the DENR Secretar?
to cancel a .ineral a/ree.ent is Sec( 44 5b7 of R% 4162 8hich /rants PO%
>uris)iction o!er )isputes in!ol!in/ .ineral a/ree.ents(
% )ispute is )efine) as Fa conflict or contro!ers? a conflict of clai.s
or ri/hts an assertion of a ri/ht, clai. or )e.an) on one si)e .et b?
contrar? clai.s or alle/ations on the other(H90 It is s?non?.ous to a cause of
action 8hich is Fan act or o.ission b? 8hich a part? !iolates a ri/ht of
another(H92
% petition or co.plaint ori/inatin/ fro. a )ispute can be file) or
initiate) onl? b? a real part?ininterest( The rules of court )efine a real
part?ininterest as Fthe part? 8ho stan)s to be benefite) or in>ure) b? the
>u)/.ent in the suit or the part? entitle) to the a!ails of the suit(H9uris)iction that Fone ha!in/ no ri/ht or interest to protect cannot in!oe the
90 *( #lac, #&%C@S &%A DICTION%R 642 5=th e)(, 01137(92 RU&ES O COURT, Rule 2, Sec( 2(9< RU&ES O COURT, Rule
-
8/12/2019 Celestial Mining Case
30/38
>uris)iction of the court as a part?plaintiff in an action(H9= Real interest is
)efine) as Fa present substantial interest, as )istin/uishe) fro. a .ere
e-pectanc?, or a future, contin/ent, subor)inate or conseBuential interest(H94
ro. the fore/oin/, a petition for the cancellation of an e-istin/
.ineral a/ree.ent co!erin/ an area applie) for b? an applicant base) on the
alle/e) !iolation of an? of the ter.s thereof, is not a F)isputeH in!ol!in/ a
.ineral a/ree.ent un)er Sec( 44 5b7 of R% 4162( It )oes not pertain to a
!iolation b? a part? of the ri/ht of another( The applicant is not a real part?
ininterest as he )oes not ha!e a .aterial or substantial interest in the
.ineral a/ree.ent but onl? a prospecti!e or e-pectant ri/ht or interest in the
.inin/ area( *e has no le/al ri/ht to such .inin/ clai. an) hence no
)ispute can arise bet8een the applicant an) the parties to the .ineral
a/ree.ent( The court rules therefore that a petition for cancellation of a
.ineral a/ree.ent anchore) on the breach thereof e!en if file) b? an
applicant to a .inin/ clai., lie Celestial an) #lue Ri)/e, falls 8ithin the
>uris)iction of the DENR Secretar? an) not PO%( Such petition is e-clu)e)
fro. the co!era/e of the PO%@s >uris)iction o!er )isputes in!ol!in/ .ineral
a/ree.ents un)er Sec( 44 5b7 of R% 4162(
M%ro%/-% &o2 e/2oe' from r%-/-& 2e -//7e of :7r-/'-2-o& o&
%e%l
On the relate) issue of estoppel, petitioner Celestial ar/ues that
Macroasia is estoppe) fro. raisin/ an) Buestionin/ the issue of the
>uris)iction of the PO% an) M%# o!er the petition for cancellation of its
.inin/ lease contracts, 8hen Macroasia raise) it onl? in its Supple.ental
Motion for Reconsi)eration(
Ae rule that the principle of estoppel )oes not appl?(
9= Ralla v. Ralla, $(R( No( 4;=6=, 'ul? 2
-
8/12/2019 Celestial Mining Case
31/38
In)ee), Macroasia 8as not the one that initiate) the instant case
before the PO%, an) thus 8as not the one that in!oe) the >uris)iction of the
PO%( *ence, on appeal, Macroasia is not preclu)e) fro. raisin/ the issue
of >uris)iction as it .a? be in!oe) e!en on appeal(9; %s a .atter of fact, a
part? can raise the issue of >uris)iction at an? sta/e of the procee)in/s(
Petitioner Celestial@s reliance on 4illela v. -oun91 to support the
contention that the PO% has >uris)iction to hear an) )eci)e a petition to
cancel e-istin/ .inin/ lease contracts, is .isplace)( In sai) case, 8e
)is.isse) the petition on the /roun) of none-haustion of a).inistrati!e
re.e)ies an) )isre/ar)e) >u)icial hierarch? as no co.pellin/ reason 8as
sho8n to 8arrant other8ise( Ahile 8e pointe) out the authorit? of the PO%,
there 8as no cate/orical pronounce.ent on the >uris)ictional issue(
No =%l-' ro&o7&eme&2 of %%&'o&me&2 '7e 2o l% of
:7r-/'-2-o& o=er e2-2-o& 2o %&el
%s 8e are not a trier of facts, 8e nee) not .ae an? fin)in/ on the
!arious in!esti/ations )one b? the M$# an) M%# on the issue of
Macroasia@s nonco.pliance 8ith its 8or obli/ations an) nonpa?.ent of
ta-es an) fees( Veril?, the la8 )oes not i.pose auto.atic cancellation of an
e-istin/ .inin/ lease contract, as it is a Buestion of fact 8hich .ust be
)eter.ine) b? the M$# 8hich can reco..en) the cancellation of the.ineral or lease a/ree.ents to the DENR Secretar?( #e that as it .a?, since
the PO% an) M%# ha!e no >uris)iction o!er the petition for cancellation of
e-istin/ .inin/ lease contracts of Macroasia, the? coul) not ha!e .a)e an?
bin)in/ pronounce.ent that Macroasia ha) in)ee) aban)one) the sub>ect
.inin/ clai.s( #esi)es, it is the DENR Secretar? 8ho has the authorit? to
cancel Macroasia@s e-istin/ .inin/ lease contracts 8hether on /roun)s of
aban)on.ent or an? !ali) /roun)s for cancellation(
9;See 'uero v. Court of Appeals, $(R( No( 0
-
8/12/2019 Celestial Mining Case
32/38
!e-/-o& -& CA4G.R. SP No. 908*8 &o2 -& %or' uris)iction of the PO%
an) the M%# o!er petitions to cancel e-istin/ .inin/ lease contracts or
.ineral a/ree.ents, it is thus clear that the Ma? 0;, 233= Decision in C%
$(R( SP No( 13;2; .ust be nullifie) for bein/ not in accor) 8ith the la8
an) the %pril 09, 2339 Decision in C%$(R( SP No( ;41u)icial )ecisions an) or)erl? a).inistration of >ustice(
The chronolo/? of e!ents re!eals the follo8in/:
0( 'anuar? 03, 2339 petitioner Celestial file) its petition
)ocete) as C%$(R( SP No( ;41
-
8/12/2019 Celestial Mining Case
33/38
ro. these facts, the C% Special Tenth Di!ision shoul) ha!e or)ere)
the consoli)ation of the petition in C%$(R( SP No( 13;2; b? C%$(R( SP
No( ;41
-
8/12/2019 Celestial Mining Case
34/38
The October 26, 2333 M%# Decision, nullifie) b? the subseBuent
No!e.ber 2=, 2336 Resolution, is uneBui!ocal that #lue Ri)/e 8as /rante)
onl? Fprior an) preferential ri/hts 2o ILEits .inin/ application o!er the
sa.e .inin/ clai.s(H=0 Ahat 8as accor)e) #lue Ri)/e 8as onl? the ri/ht to
file the .inin/ application but 8ith no assurance that the application 8ill be
reco..en)e) for appro!al b? the M$# an) finall? appro!e) b? the DENR
Secretar?(
Moreo!er, a preferential ri/ht 8oul) at .ost be an inchoate ri/ht to be
/i!en priorit? in the /rant of a .inin/ a/ree.ent( It has not ?et been
transfor.e) into a le/al an) !este) ri/ht unless appro!e) b? the M$# or
DENR Secretar?( E!en if #lue Ri)/e has a preferential ri/ht o!er the
sub>ect .inin/ clai.s, it is still 8ithin the co.petence an) )iscretion of the
DENR Secretar? to /rant .ineral a/ree.ents to 8ho.e!er he )ee.s best to
pursue the .inin/ clai.s o!er an) abo!e the preferential status /i!en to
#lue Ri)/e( #esi)es, bein/ si.pl? a preferential ri/ht, it is ineffecti!e to
)issol!e the pree-istin/ or subsistin/ .inin/ lease contracts of Macroasia(
Te !ENR Sere2%ry %/ f7ll '-/re2-o& -& 2e r%&2 of m-&er%l
%reeme&2/
#lue Ri)/e also ar/ues that the Secretar? /ra!el? abuse) his
)iscretion in appro!in/ the sub>ect MPS%s 8ithout Macroasia co.pl?in/
8ith the .an)ator? reBuire.ents for .ineral a/ree.ent applications un)er
Sec(
-
8/12/2019 Celestial Mining Case
35/38
Ae are not persua)e)(
#lue Ri)/e cites Sec( uris)iction( %).inistrati!e )ecisions on .atter 8ithin
the >uris)iction of a).inistrati!e bo)ies are to be respecte) an) can onl? be
-
8/12/2019 Celestial Mining Case
36/38
set asi)e on proof of /ra!e abuse of )iscretion, frau), or error of la8(=