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(

- -


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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(


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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


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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


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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(


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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


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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


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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=


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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=


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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


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>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


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.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%&',


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- - - -

Sec( ;( The Secretar(The Secretar? shall:

- - - -

5


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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


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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=


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.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/ %/


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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


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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=


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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(


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Sec( 60(

- - - -

D-2-& f-f2ee& (1;#


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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


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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


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>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


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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


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!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


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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


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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(


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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


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set asi)e on proof of /ra!e abuse of )iscretion, frau), or error of la8(=

Celestial Mining Case

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