CA affirms revocation of midnight mining deal

MANILA, Philippines – The Court of Appeals (CA) has affirmed the revocation of the alleged midnight deal forged by the previous administration with Canadian firm MBMI Resources Inc. and its local partners for mining operations in three towns in Palawan.

In a 12-page ruling, the Fifth Division of the appellate court upheld the legality of the April 5, 2011 order of the Office of the President cancelling the Financial or Technical Assistance Agreement (FTAA) with the government for the exploration, development and utilization of minerals in Rizal, Bataraz and Narra towns.

The CA dismissed the appeal filed by MBMI’s local partners, Narra Nickel Mining and Development Corp., Tesoro Mining and Development and McArthur Mining Inc.

The appellate court also dismissed the claim of the petitioners that the FTAA could no longer be cancelled since former President and now Pampanga Rep. Gloria Macapagal-Arroyo had approved it.

It likewise junked the petitioners’ claim that the Office of the President could not cancel their FTAA as one of the contracting parties.

The CA said Section 17.2 of the FTAA states that either parties could cancel the agreement if there was violation of its terms and conditions or if the contractor failed to pay taxes and fees due the government.

“Factual findings made by quasi-judicial bodies and administrative agencies when supported by substantial evidence are accorded great respect and even finality by the appellate courts. This is because administrative agencies possess specialized knowledge and expertise in their respective fields,” stated the ruling penned by Associate Justice Samuel Gaerlan.

“As such, their findings of fact are binding upon this Court unless there is showing of grave abuse of discretion, or where it is clearly shown that they were arrived at arbitrarily or in disregard of the evidence on record,” it added.

The ruling added that petitioners were not denied due process.

Aquino cancelled the mining firms’ FTAA based on the complaint filed by Redmont Consolidated Mining Corp., which alleged that the recommendation and approval of the FTAA in favor of the petitioners were done with grave abuse of discretion.

Redmont claimed that there were violations of the mining law, its rules and regulations, as well as other applicable laws connected with the conversion of petitioners’ mineral production and sharing agreement and exploration permit applications filed in 1991 and 2001, respectively, to FTAA applications in 2007.