LA BUGAL B’LAAN TRIBAL ASSOCIATION ASSOCIATION INC., et. et . al. v. VICTOR O. R AMOS, Secretary Department o !nv"ronment an# Nat$ral Re%o$rce%& 'ORACIO RAMOS, D"rector, M"ne% an# Geo%c"ence% Geo%c"ence% B$rea$ (MGB)D!NR*& (MGB)D!NR*& RUB!N TORR!S, TORR!S, !+ec$t"ve Secretary& an# MC (-'ILI--IN!S* INC. G.R. No. /011/, /0 2an$ary /334, !n Banc (Carp"o)Morale%, 2.* 5ACTS6 RA 7942 (The Philippine Mining Act) took effect on April 9, 1995. Before the effectivit of RA 7942, or on M!rch "#, 1995, the Pre$i%ent $igne% ! &in!nci!l !n% Technic!l A$$i$t!nce Agree'ent Agree'ent (&TAA (&TAA)) ith M*P, M*P, ! corpor!tion corpor!tion org!ni+e% org!ni+e% n%er n%er Philippine Philippine l!$, l!$, covering covering clo$e to 1##,### hect!re$ of l!n% in -oth *ot!!to, -lt!n /%!r!t, 0!v!o %el -r !n% orth *ot!!t *ot!!to. o. n Ag$t Ag$t 15, 1995, 1995, the 3nviron 3nviron'ent 'ent -ecret! -ecret!r r ictor ictor R!'o$ R!'o$ i$$e% i$$e% 03R 03R A%'ini$tr!tive A%'ini$tr!tive r%er 952", hich !$ l!ter repe!le% repe!le% 03R A%'ini$tr!tive A%'ini$tr!tive r%er 964#, !%opte% on 0ece'er 2#, 1996.
Petit Petition ioner$ er$ pr! pr!e% e% th!t th!t RA 7942, 7942, it$ i'ple i'ple'en 'entin ting g rle$ rle$,, !n% !n% the the &TA &TAA et eteen een the govern'ent !n% M*P e %ecl!re% ncon$tittion!l on gron% th!t the !llo fll foreign one% corpor!tion$ like M*P to eploit, eplore !n% %evelop Philippine 'iner!l re$orce$ in contr!vention of Article 8 -ection 2 p!r!gr!ph$ 2 !n% 4 of the *h!rter. n :!n!r 2##1, M* ! plicl li$te% A$tr!li!n 'ining !n% eplor!tion co'p!n $ol% it$ hole $t!ke in M*P to -!gitt!ri$ Mine$, 6#; of hich i$ one% &ilipino$ hile 4#; of hich i$ one% n%ophil Re$orce$, Re$orce$, !n A$tr!li!n A$tr!li!n co'p!n. co'p!n. 03R !pprove% the tr!n$fer !n% regi$tr!tion of the &TAA in -!gitt!ri$< n!'e t =ep!nto *on$oli%!te% !$$!ile% the $!'e. The l!tter c!$e i$ $till pen%ing efore the *ort of Appe!l$. 3 279, i$$e% for'er Pre$i%ent A>ino on :l 25, 19?7, !thori+e$ the 03R to !ccept, con$i%er !n% ev!l!te propo$!l$ fro' foreign one% corpor!tion$ or foreign inve$tor$ for contr!ct$ or !gree'ent$ involving ither technic!l or fin!nci!l !$$i$t!nce for l!rge $c!le eplor!tion, eplor!tion, %evelop'ent !n% tili+!tion tili+!tion of 'iner!l$ hich pon !ppropri!te !ppropri!te reco''en%!tion of the (03R) -ecret!r, the Pre$i%ent '! eecte ith the foreign proponent. M*P likei$ likei$e e conten% conten%e% e% th!t th!t the !nnl'e !nnl'ent nt of the &TAA &TAA ol% ol% viol!te viol!te ! tre!t tre!t eteen eteen the Philippine$ !n% A$tr!li! hich provi%e$ for the protection of A$tr!li!n inve$t'ent$. ISSU!S6
1. hether or not the Philippine Philippine Mining Act Act i$ ncon$tittion!l ncon$tittion!l for !lloing fll foreign foreign one% corpor!tion$ to eploit the Philippine 'iner!l re$orce$. 2. hether or not the &TAA &TAA eteen eteen the govern'ent govern'ent !n% M*P i$ ! @$ervice contr!ct ‖ th!t per'it$ fll foreign one% co'p!nie$ to eploit the Philippine 'iner!l re$orce$. '!LD6 5"r%t I%%$e6 RA 074/ "% Uncon%t"t$t"onal
RA 7942 or the Philippine Mining Act of 1995 i$ ncon$tittion!l for per'itting fll foreign one% corpor!tion$ to eploit the Philippine n!tr!l re$orce$. Article 8 -ection -ection 2 of the 19?7 *on$tittion ret!ine% ret!ine% the Reg!li!n Reg!li!n 0octrine hich $t!te$ $t!te$ th!t @All l!n%$ of the plic %o'!in, !ter$, 'iner!l$, co!l, petrole', !n% other 'iner!l$, co!l, petrole', !n% other 'iner!l oil$, !ll force$ of potenti!l energ, fi$herie$, fore$t$ or ti'er, il%life il%life,, flor! !n% f!n!, f!n!, !n% other n!tr!l n!tr!l re$or re$orce$ ce$ !re one% one% the -t!te. -t!te. ‖The $!'e $!'e $ectio $ection n !l$o !l$o $t!te$ $t!te$ th!t, th!t, @the @the eplo eplor!t r!tion ion !n% %eve %evelop lop'en 'entt !n% !n% tili tili+!t +!tio ion n of n!t n!tr!l r!l re$orce$ $h!ll e n%er the fll control !n% $pervi$ion of the -t!te. *on$ *on$pic pico o$l $l !$e !$ent nt in -ecti -ection on 2 i$ the the prov provi$i i$ion on in the the 19"5 19"5 !n% !n% 197" 197" *on$t *on$tit ittio tion n !th !thor ori+ i+in ing g the the -t!t -t!te e to gr!n gr!ntt lice licen$ n$e$ e$,, conc conce$ e$$i $ion on$, $, or le!$ le!$e$ e$ for for the the epl eplor or!t !tio ion, n, eploit!tion, eploit!tion, %evelop'ent, or tili+!tion tili+!tion of n!tr!l re$orce$. B $ch o'i$$ion, the tili+!tion of in!lien!le l!n%$ of the plic %o'!in throgh licen$e, conce$$ion or le!$e i$ no longer !lloe% n%er the 19?7 *on$tittion.
n%er the conce$$ion $$te', the conce$$ion!ire '!ke$ ! %irect e>it inve$t'ent for the prpo$e of eploiting ! p!rticl!r n!tr!l re$orce ithin ! given !re!. The conce$$ion !'ont$ to co'plete control the conce$$ion!ire over the contr<$ n!tr!l re$orce, for it i$ given ecl$ive !n% plen!r right$ to eploit ! p!rticl!r re$orce !t the point of etr!ction. The 19?7 *on$tittion, 'oreover, h!$ %elete% the phr!$e @'!n!ge'ent or other for'$ of !$$i$t!nce‖in the 197" *h!rter. The pre$ent *on$tittion no !llo$ onl @technic!l !n% fin!nci!l !$$i$t!nce. ‖The '!n!ge'ent !n% the oper!tion of the 'ining !ctivitie$ foreign contr!ctor$, the pri'!r fe!tre of the $ervice contr!ct$ !$ preci$el the evil the %r!fter$ of the 19?7 *on$tittion $oght to !voi%. The con$tittion!l provi$ion !lloing the Pre$i%ent to enter into &TAA$ i$ !n eception to the rle th!t p!rticip!tion in the n!tion<$ n!tr!l re$orce$ i$ re$erve% ecl$ivel to &ilipino$. Accor%ingl, $ch provi$ion '$t e con$tre% $trictl !g!in$t their eno'ent non &ilipino$. Therefore, RA 7942 i$ inv!li% in$of!r !$ the $!i% !ct !thori+e$ $ervice contr!ct$. Althogh the $t!tte e'plo$ the phr!$e @fin!nci!l !n% technic!l !gree'ent$ ‖ in !ccor%!nce ith the 19?7 *on$tittion, it$ pertinent provi$ion$ !ct!ll tre!t the$e !gree'ent$ !$ $ervice contr!ct$ th!t gr!nt enefici!l oner$hip to foreign contr!ctor$ contr!r to the fn%!'ent!l l!. The n%erling !$$'ption in the provi$ion$ of the l! i$ th!t the foreign contr!ctor '!n!ge$ the 'iner!l re$orce$ $t like the foreign contr!ctor in ! $ervice contr!ct. B !lloing foreign contr!ctor$ to '!n!ge or oper!te !ll the !$pect$ of the 'ining oper!tion, RA 7942 h!$, in effect, convee% enefici!l oner$hip over the n!tion<$ 'iner!l re$orce$ to the$e contr!ctor$, le!ving the -t!te ith nothing t !re title thereto. The $!'e provi$ion$, hether %e$ign or in!%vertence, per'it ! circ'vention of the con$tittion!ll or%!ine% 6#4#; c!pit!li+!tion re>ire'ent for corpor!tion$ or !$$oci!tion$ eng!ge% in the eploit!tion, %evelop'ent !n% tili+!tion of Philippine n!tr!l re$orce$. hen p!rt$ of ! $t!tte !re $o 't!ll %epen%ent !n% connecte% !$ con%ition$, con$i%er!tion$, in%ce'ent$ or co'pen$!tion$ for e!ch other !$ to !rr!nt ! elief th!t the legi$l!tre inten%e% the' !$ ! hole, then if $o'e p!rt$ !re ncon$tittion!l, !ll provi$ion$ th!t !re th$ %epen%ent, con%ition!l or connecte%, '$t f!il ith the'. n%er Article 8 -ection 2 of the 19?7 *h!rter, foreign one% corpor!tion$ !re li'ite% onl to 'erel technic!l or fin!nci!l !$$i$t!nce to the -t!te for l!rge $c!le eplor!tion, %evelop'ent !n% tili+!tion of 'iner!l$, petrole' !n% other 'iner!l oil$. Secon# I%%$e6 R- Government)MC- 5TAA "% a Serv"ce Contract
The &TAA eteen he M*P !n% the Philippine govern'ent i$ likei$e ncon$tittion!l $ince the !gree'ent it$elf i$ ! $ervice contr!ct. -ection 1." of the &TAA gr!nt$ M*P ! fll foreign one% corpor!tion, the ecl$ive right to eplore, eploit, tili+e !n% %i$po$e of !ll 'iner!l$ !n% pro%ct$ th!t '! e pro%ce% fro' the contr!ct !re!. ‖-ection 1.2 of the $!'e !gree'ent provi%e$ th!t 3M*P $h!ll provi%e !ll fin!ncing, technolog, '!n!ge'ent, !n% per$onnel nece$$!r for the Mining per!tion$. The$e contr!ct!l $tipl!tion$ !n% rel!te% provi$ion$ in the &TAA t!ken together, gr!nt M*P enefici!l oner$hip over n!tr!l re$orce$ th!t properl elong to the -t!te !n% !re inten%e% for the enefit of it$ citi+en$. The$e $tipl!tion$ !re !horrent to the 19?7 *on$tittion. The !re preci$el the vice$ th!t the fn%!'ent!l l! $eek$ to !voi%, the evil$ th!t it !i'$ to $ppre$$. *on$e>entl, the contr!ct fro' hich the $pring '$t e $trck %on.
-8RO CO--!R MINING COR-ORATION, petitioner, v$. MIN!S AD2UDICATION BOARD)D!-ARTM!NT O5 !NVIRONM!NT AND NATURAL R!SOURC!S, MIN!S
&A*T-C Priv!te re$pon%ent i$ ! corpor!tion org!ni+e% !n% ei$ting n%er the l!$ of the Philippine$ !n% eng!ge% in the $ine$$ of 'ining. n 12 -epte'er 2##", priv!te re$pon%ent file% !n Applic!tion for 3plor!tion Per'it7ith MDB. n trn, petitioner file% ! erifie% Prote$tEppo$ition to the Applic!tion for 3plor!tion Per'it of the priv!te re$pon%ent. t !$ !llege%l file% ith the P!nel of Aritr!tor$ on "# Ag$t 2##5 !n% !$ receive% the l!tter on 5 -epte'er 2##5. Prior, hoever, to petitionerF$ filing of it$ erifie% Prote$tEppo$ition to the priv!te re$pon%entF$ Applic!tion for 3plor!tion Per'it, petitionerF$ MP-A o. 15"2###1 !$ c!ncelle% per 03R Me'or!n%' r%er (0M) o. 2##5#". Petitioner 'ove% for the recon$i%er!tion of 0M o. 2##5#", hich the 03R -ecret!r %enie%. n 1 -epte'er 2##5, the MDB i$$e% 3P o. #5##1 to priv!te re$pon%ent. n !n r%er %!te% 14 -epte'er 2##5, the P!nel of Aritr!tor$ %i$'i$$e% 'ot proprio the erifie% Prote$tEppo$ition of petitioner,!n% !'ong the gron%$ cite% !$, the the P!nel of Aritr!tor$ h!% no !thoritEri$%iction to c!ncel, %en !n%Eor revoke 3P o. #5##1 of priv!te re$pon%ent, the $!'e eing lo%ge% ith the MDB, the i$$ing !thoritG --3C hether the P!nel of Aritr!tor$ h!$ ri$%iction to c!ncel, %en !n%Eor revoke 3P o. #5##1 i$$e% MDB to priv!te re$pon%ent. H3=0C I3-.t i$ cle!r fro' the rling of the *ort in l'pic Mine$ !n% *ele$ti!l ickel Mining th!t the P!nel of Aritr!tor$ onl h!$ ri$%iction over !%ver$e cl!i'$, conflict$, !n% oppo$ition$ rel!ting to !pplic!tion$ for the gr!nt of 'iner!l right$, t not over c!ncell!tion of 'iner!l right$ !lre!% gr!nte% !n% ei$ting. A$ to ho h!$ ri$%iction to c!ncel !n ei$ting eplor!tion per'it, -ection 2? of 0A . 96 4# eplicitl provi%e$C -ection 2?. *!ncell!tion of !n 3plor!tion Per'it. J The 0irectorEconcerne% Region!l 0irector '! c!ncel the 3plor!tion Per'it for f!ilre of the Per'ittee to co'pl ith !n of the re>ire'ent$ !n% for viol!tion($) of the ter'$ !n% con%ition$ n%er hich the Per'it i$ i$$e%. &or renee% 3plor!tion Per'it$, the -ecret!r pon the reco''en%!tion of the 0irector $h!ll c!$e the c!ncell!tion of the $!'e. Accor%ing to -ection 5 of 0A o. 964#, K0irectorK 'e!n$ the 0irector of the MDB *entr!l ffice, hile KRegion!l 0irectorK 'e!n$ the Region!l 0irector of !n MDB Region!l ffice. A$ the !thorit to i$$e !n 3plor!tion Per'it i$ ve$te% in the MDB, then the $!'e nece$$!ril incl%e$ the coroll!r poer to revoke, ith%r! or c!ncel the $!'e.n%i$pt!l, the !thorit to %en, revoke, or c!ncel 3P o. #5##1 of priv!te re$pon%ent i$ !lre!% lo%ge% ith the MDB, !n% not ith the P!nel of Aritr!tor$.
