CA voids seizure of mining firm’s copper concentrates

MANILA, Philippines - The Court of Appeals (CA) has ordered the release of copper concentrates owned by OceanaGold Philippines Inc. that the Nueva Vizcaya provincial government seized last year for alleged violation of an ordinance regulating quarrying in the province.

In a 13-page decision, the CA’s 12th Division voided the seizure order issued by the Provincial Environment and Natural Resources Office for OceanaGold’s five trucks containing copper concentrates.

The appellate court granted the petition filed by the multinational mining firm that operates the Didipio mining project that straddles a mountainous region between the provinces of Nueva Vizcaya and Quirino.

The CA also made permanent the injunction order it earlier had issued against the provincial government.

“In sum, factual, documentary and legal bases exist for us to make permanent the injunction issued against respondents as the seizure receipts were issued without legal basis,” read the ruling penned by Associate Justice Victoria Isabel Paredes.

OceanaGold’s trucks were impounded for alleged violation of Ordinance No. 18, s. 1993, which prohibits quarrying activities without permit and non-payment of the corresponding quarry taxes.

But the CA agreed with the mining firm that the seizure had no basis because the copper concentrates it was supposed to transport to Poro Point in La Union were not covered by the provincial ordinance, which only covers quarried sand, stone and other aggregates.

The CA also said that the mining firm had the required ore transport permit from the Mines and Geosciences Bureau’s regional office.

The CA pointed out that OceanaGold’s mining activities are covered by a Financial and Technical Assistance Agreement that the firm executed with the government pursuant to the Philippine Mining Act of 1995, exempting it from securing quarrying permits for earth-moving works to carry out its mining project.

“Since the province of Nueva Vizcaya did not prove that the steel containers being transported by petitioner do not contain copper concentrates as indicated in its permit, and based on the documents presented by petitioner, it could not have violated Ordinance No. 18, s. 1993,” the CA said.

“As it is, the seizure of its trucks and the impounding of its steel containers have no legal basis,” it added.

The CA cited an earlier Supreme Court ruling declaring that OceanaGold was not engaged in quarrying.

Associate Justices Isaias Dicdican and Michael Elbinias concurred with the ruling.