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LA BUGAL BLAAN TRIBAL ASSOCIATION INC., et. al. v. VICTOR O. RAMOS, SecretaryDepartment o !nv"ronment an# Nat$ral Re%o$rce%& 'ORACIO RAMOS, D"rector, M"ne%an# Geo%c"ence% B$rea$ (MGB)D!NR*& RUB!N 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.*

5ACTS6RA 7942 (The Philippine Mining Act) took effect on April 9, 1995. Before the effectivit of RA7942, or on M!rch "#, 1995, the Pre$i%ent $igne% ! &in!nci!l !n% Technic!l A$$i$t!nce

Agree'ent (&TAA) ith M*P, ! corpor!tion org!ni+e% n%er Philippine l!$, covering clo$eto 1##,### hect!re$ of l!n% in -oth *ot!!to, -lt!n /%!r!t, 0!v!o %el -r !n% orth*ot!!to. n Ag$t 15, 1995, the 3nviron'ent -ecret!r ictor R!'o$ i$$e% 03R

A%'ini$tr!tive r%er 952", hich !$ l!ter repe!le% 03R A%'ini$tr!tive r%er 964#,!%opte% on 0ece'er 2#, 1996.

Petitioner$ pr!e% th!t RA 7942, it$ i'ple'enting rle$, !n% the &TAA eteen thegovern'ent !n% M*P e %ecl!re% ncon$tittion!l on gron% th!t the !llo fll foreignone% 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#; ofhich i$ one% n%ophil Re$orce$, !n A$tr!li!n co'p!n. 03R !pprove% the tr!n$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$$e% for'er Pre$i%ent A>ino on :l 25, 19?7, !thori+e$ the 03R to !ccept,con$i%er !n% ev!l!te propo$!l$ fro' foreign one% corpor!tion$ or foreign inve$tor$ forcontr!ct$ or !gree'ent$ involving ither technic!l or fin!nci!l !$$i$t!nce for l!rge $c!leeplor!tion, %evelop'ent !n% tili+!tion of 'iner!l$ hich pon !ppropri!te reco''en%!tionof the (03R) -ecret!r, the Pre$i%ent '! eecte ith the foreign proponent. M*Plikei$e conten%e% th!t the !nnl'ent of the &TAA ol% viol!te ! tre!t eteen thePhilippine$ !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 Mining Act i$ ncon$tittion!l for !lloing fll foreignone% corpor!tion$ to eploit the Philippine 'iner!l re$orce$.

2. hether or not the &TAA eteen the govern'ent !n% M*P i$ ! @$ervice contr!ctth!t per'it$ 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$tittion!l for per'itting fll foreignone% corpor!tion$ to eploit the Philippine n!tr!l re$orce$.

Article 8 -ection 2 of the 19?7 *on$tittion ret!ine% the Reg!li!n 0octrine hich $t!te$ 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, flor! !n% f!n!, !n% other n!tr!l re$orce$ !re one% the -t!te. The $!'e$ection !l$o $t!te$ th!t, @the eplor!tion !n% %evelop'ent !n% tili+!tion of n!tr!lre$orce$ $h!ll e n%er the fll control !n% $pervi$ion of the -t!te.

*on$pico$l !$ent in -ection 2 i$ the provi$ion in the 19"5 !n% 197" *on$tittion!thori+ing the -t!te to gr!nt licen$e$, conce$$ion$, or le!$e$ for the eplor!tion,eploit!tion, %evelop'ent, or tili+!tion of n!tr!l re$orce$. B $ch o'i$$ion, the tili+!tionof 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.

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n%er the conce$$ion $$te', the conce$$ion!ire '!ke$ ! %irect e>it inve$t'ent for theprpo$e of eploiting ! p!rticl!r n!tr!l re$orce ithin ! given !re!. The conce$$ion!'ont$ to co'plete control the conce$$ion!ire over the contr

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-8RO CO--!R MINING COR-ORATION,petitioner,v$.MIN!S AD2UDICATION BOARD)D!-ARTM!NT O5 !NVIRONM!NT AND NATURALR!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!tteron 5 -epte'er 2##5.

Prior, hoever, to petitionerF$ filing of it$ erifie% Prote$tEppo$ition to the priv!tere$pon%entF$ Applic!tion for 3plor!tion Per'it, petitionerF$ MP-A o. 15"2###1 !$c!ncelle% per 03R Me'or!n%' r%er (0M) o. 2##5#". Petitioner 'ove% for therecon$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 theerifie% Prote$tEppo$ition of petitioner,!n% !'ong the gron%$ cite% !$, the the P!nel of

Aritr!tor$ h!% no !thoritEri$%iction to c!ncel, %en !n%Eor revoke 3P o. #5##1 ofpriv!te re$pon%ent, the $!'e eing lo%ge% ith the MDB, the i$$ing !thoritG

--3Chether the P!nel of Aritr!tor$ h!$ ri$%iction to c!ncel, %en !n%Eor revoke 3P o. #5##1i$$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$ti!l ickel Mining th!tthe P!nel of Aritr!tor$ 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$, t not over c!ncell!tion of 'iner!lright$ !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 . 964# eplicitl provi%e$C

-ection 2?. *!ncell!tion of !n 3plor!tion Per'it. J The 0irectorEconcerne% Region!l0irector '! 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 the0irector $h!ll c!$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!lffice, hile KRegion!l 0irectorK 'e!n$ the Region!l 0irector of !n MDB Region!l ffice. A$the !thorit to i$$e !n 3plor!tion Per'it i$ ve$te% in the MDB, then the $!'e nece$$!rilincl%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$.

http://www.lawphil.net/judjuris/juri2009/jul2009/gr_179674_2009.html#fnt7http://www.lawphil.net/judjuris/juri2009/jul2009/gr_179674_2009.html#fnt7