SC upholds ’95 Mining Act

The Supreme Court (SC) has ruled that Republic Act 7942, the Philippine Mining Act of 1995, and its implementing rules and regulations (IRRs) are constitutional.

In a 39-page decision issued last March 28, the SC dismissed a petition questioning the constitutionality of Section 76 of RA 7942 and its IRRs, Department of Environment and Natural Resources Administrative Order 96-40, as well as the financial and technical assistance agreement between the government and Arimco Mining Corp. (later renamed Climax-Arimco Mining Corp. or CAMC).

Penned by Justice Minita Chico-Nazario, the SC decision ruled that "there is no need for the Court en banc to tackle the case because the decision of the 1st division did not declare unconstitutional any law or regulation; it merely followed the Court en banc’s earlier decision in La Bugal B’laan vs Ramos."

The SC held that Section 76 of RA 7942 is not unconstitutional on grounds that it did not allow the taking of private property without the determination of public use and the payment of just compensation.

There was no basis for the contention of petitioners Didipio Earth-Savers’ Multi-Purpose Association Inc. (DESAMA) that the Mining Law and its implementing rules and regulations do not provide for just compensation in expropriating private properties, the SC added.

Section 76 of RA 7942 and Section 107 of DAO 96-40 provide for the payment of just compensation, the court said.

The SC said that an examination of the questioned provisions gave no indication that the courts are excluded from taking cognizance of expropriation cases under the Mining Law.

The original and exclusive jurisdiction of the courts to decide determination of just compensation remains intact despite the preliminary determination made by the Panel of Arbitrators or the Mines Adjudication Board, the SC added.

The high tribunal also dismissed the petitioners’ contention that the assailed provisions of FTAA had ceded to the CMAC full control and management of mining enterprises.

The issue was already raised and resolved in La Bugal-B’laan Tribal Association Inc. versus Ramos where the high court upheld constitutionality of the Mining Law, the SC added.

In La Bugal, the Court held that RA 7942 and DAO 96-40 vest the government "more than a sufficient degree of control and supervision over the conduct of mining operations," the SC said.

It said the Constitution "expressly allows service contracts in the large-scale exploration, development, and utilization of minerals, petroleum, and mineral oils via agreements with foreign-owned corporations involving either technical or financial assistance as provided by law."

"The 1987 Constitution allows the continued use of service contracts with foreign corporations as contractors who would invest in and operate and manage extractive enterprises, subject to the full control and supervision of the State," the SC said.

These agreements with foreign corporations are not limited to mere financial or technical assistance, the tribunal added.

In La Bugal, the SC declared RA 7942 and its IRRs constitutional.

In a resolution written by Justice Artemio Panganiban, the longest decision in the court’s 104-year history, the SC ruled that all but two provisions of the FTAA executed in 1995 between the government and Western Mining Corp. Philippines, do not violate any provision of the Constitution.

"The mining industry plays a pivotal role in the economic development of the country and is a vital tool in the government’s thrust of accelerated recovery," the SC said, citing the La Bugal case.

Concurring in the resolution were Chief Justice Artemio Panganiban and Associate Justices Consuelo Ynares-Santiago, Ma. Alicia Austria-Martinez, and Romeo Callejo Sr.

The petition was filed by the Didipio Earth-Savers’ Multi-Purpose Association Inc., et al. against CAMC, the majority of which stockholders are Australian, operating in the provinces of Nueva Vizcaya and Quirino.

DESAMA, an organization of farmers and indigenous peoples, is joined in the petition by other residents of areas affected by CAMC’s mining activities.