Celestial v. Macroasia (case digest)

G.R. No. 169080 CELESTIAL NICKEL MINING EXPLORATION CORPORATION, vs. MACROASIA CORPORATION(former! IN"ANTA IN"ANTA MINERAL AN# IN#$STRIAL CORPORATION%, &L$E RI#GE MINERAL CORPORATION, ') LE&AC* MINING CORPORATION, "ACTS+

The Secretary of Agriculture and Natural Resources and Infanta Mineral and Industrial Corporation (Infanta) entered into a Mining Lease Contract V-!"!# -!"!# Infa Infant nta$ a$ss corp corpo orate rate na%e na%e &as &as then then chan change ged d to Co'e Co'ert rtso son n old oldin ings gs Corporation and su'seuently to its present na%e* Macroasia Corporation# After so%eti%e* Celestial filed a +etition to cancel the su',ect %ining lease contracts and other %ining clai%s of Macroasia including those coered 'y Mining Lease Contract No# V-!"!* 'efore the +anel of Ar'itrators (+.A) of the Mines and /eo-Sciences 0ureau (M/0) of the 12NR# 0lue Ridge* in an earlier letter-petition* also &rote the 1irector of Mines to see3 cancellation of %ining lease contracts and other %ining rights of Macroasia and anothe anotherr entity entity** Le'ach Le'ach Mining Mining Corpor Corporati ation on (Le'ac (Le'ach)* h)* in %ining %ining areas areas in 0roo3e$s +oint# Cele Celest stia iall is the the assi assign gnee ee of 44 44 %ini %ining ng clai clai%s %s coe coeri ring ng such such area areass contiguous to Infanta$s Infanta$s (no& (no& Macroasia) %ining lode clai%s# Celestial also holds an M+SA +SA &ith &ith the goer oern% n%eent &hic &hich h coe coers rs 5*67 5*67" " hect hectar ares es loc locate ated at Ipilan8Maasin* 0roo3e$s +oint* +ala&an and t&o pending applications coering another 4*!4! hectares in 0arangay Mainit also in 0roo3e$s +oint# Celestial sought the cancellation of Macroasia$s lease contracts#  Macroasia refuted the grounds for cancellation ino3ed 'y Celestial# 0ased on the records of the 0ureau of Mines and findings of the field inestiga inestigations tions** the +.A granted granted the petition petition of Celestial to cancel cancel the Mining Lease Contracts of Macroasia9 and found the clai%s of the others indu'ita'ly %eritorious# It gae Celestial the the preferential right to Macroasia$s Macroasia$s %ining areas# It upheld 0lue Ridge$s petition* 'ut only as against the Mining Lease Contract areas

of Le'ach* and the said leased areas &ere declared auto%atically a'andoned# It gae 0lue Ridge priority right to the aforesaid Le'ach$s areas8%ining clai%s# 0lue Ridge and Macroasia appealed 'efore the MA0# Le'ach did not file any notice of appeal &ith the reuired %e%orandu% of  appeal9 thus* &ith respect to Le'ach* the a'oe resolution 'eca%e final and e:ecutory# The MA0 %ade a decision upholding the 1ecision of the +.A to cancel the Mining Lode8Lease Contracts of Macroasia# o&eer* the MA0* su'seuently issued a resolution acating its preious decision* holding that neither the +.A nor the MA0 had the po&er to reo3e a %ineral agree%ent duly entered into 'y the 12NR Secretary# The MA0 further  held that the po&er to cancel or reo3e a %ineral agree%ent &as e:clusiely lodged &ith the 12NR Secretary# Celestial and 0lue Ridge %ade an appeal# The CA Special5 th 1iision affir%ed the MA0 Resolution &hich upheld the e:clusie authority of the 12NR Secretary to approe* cancel* and reo3e %ineral agree%ents# The CA also denied Celestial$s Motion for Reconsideration# ;hile the CA Special !th 1iision granted 0lue Ridge$s petition9 reersed and set aside the Resolutions of the MA09 and treated the cancellation of a %ining lease agree%ent as a %ining dispute &ithin the e:clusie ,urisdiction of the +.A under Sec# << of RA <=45* e:plaining that the po&er to resole %ining disputes* &hich is the greater po&er* necessarily includes the lesser po&er to cancel %ining agree%ents# ISS$E+

;hether or not it is only the Secretary of the 12NR &ho has the ,urisdiction to cancel %ining contracts and priileges> *EL#+

?2S# It is only the Secretary of the 12NR &ho has ,urisdiction to cancel %ining contracts and priileges#

After a scrutiny of the proisions of +1 4@7* 2. 5* 2. 5<=* RA <=45 and its i%ple%enting rules and regulations* e:ecutie issuances* and case la&* &e rule that the 12NR Secretary* not the +.A* has the ,urisdiction to cancel e:isting %ineral lease contracts or %ineral agree%ents 'ased on the follo&ing reasons The po&er of the 12NR Secretary to cancel %ineral agree%ents e%anates fro% his ad%inistratie authority* superision* %anage%ent* and control oer  %ineral resources under Chapter I* Title BIV of 0oo3 IV of the Reised Ad%inistratie Code of =6<# It is the 12NR* through the Secretary* that %anages* superises* and regulates the use and deelop%ent of all %ineral resources of the country# It has e:clusie ,urisdiction oer the %anage%ent of all lands of pu'lic do%ain* &hich coers %ineral resources and deposits fro% said lands# It has the po&er to oersee* superise* and police our natural resources &hich include %ineral resources# 1eried fro% the 'road and e:plicit po&ers of the 12NR and its Secretary under  the Ad%inistratie Code of =6< is the po&er to approe %ineral agree%ents and necessarily to cancel or cause to cancel said agree%ents# nder RA <=45* the po&er of control and superision of the 12NR  Secretary oer the M/0 to cancel or reco%%end cancellation of %ineral rights clearly de%onstrates the authority of the 12NR Secretary to cancel or approe the cancellation of %ineral agree%ents# The 12NR Secretary$s po&er to cancel %ining rights or agree%ents through the M/0 can 'e inferred fro% Sec# 57!* Chapter BBIV of 12NR A. =@-4! on cancellation* reocation* and ter%ination of a per%it8%ineral agree%ent8DTAA#