Supreme Court affirms government control of Diwalwal mine site

MANILA, Philippines - The Supreme Court has affirmed its ruling giving the government full control and supervision of mining operations in Agusan-Davao-Surigao Forest Reserve known as the “Diwal-wal Gold Rush Area.”

In a 46-page decision, the High Tribunal junked the appeal filed by Southeast Mindanao Gold Mining Corp. of its June 2006 decision that declared null and void its exploration permit (No. 133) over the area, which was initially issued to Marcopper Mining Corp. but the latter transferred it to SEM, its subsidiary company.

The court noted that MMC violated the terms and conditions prescribed in the said permit, particularly the condition that categorically states that the permit shall be for exclusive use and benefit of MMC or its duly authorized agents.

It noted that SEM failed to claim or submit proof that it is the designated agent of MMC to represent the latter in its business dealings or undertakings,

The SC said SEM cannot be given priority to develop and exploit the area considering that EP 133 expired by non-renewal on July 6, 1994.

It furthered that the transfer of the said permit to SEM was illegal because it was done in contravention of PD No. 463, which requires prior approval from proper authority.

“Simply told, SEM holds nothing for it to be entitled to conduct mining activities in the disputed mineral land,” the court said.

The SC stressed that even if EP 133 was valid, the same has been effectively withdrawn with the issuance of Proclamation No. 297 by President Arroyo on Nov. 25, 2002, declaring a certain portion of land in Monkayo, Compostela Valley, with an area of 8,100 hectares as a mineral reservation and and as an environmentally critical area brought about by unregulated small to medium-scale mining operations.

SEM also questioned the constitutionality of Proclamation No. 297 in its motion for reconsideration but the court dismissed the issue for lack of merit aside from the fact that it was belatedly raised.

The mining firm argued that the said proclamation violates Section 4, Article XII of the Constitution which bars the President from excluding forest reserves and proclaiming the same as mineral reservations, since the power to de-classify them is resident in Congress.

Invalid

It further contended that Proclamation 297 is invalid as it violates Section 1 of Republic Act No. 3092, amending several sections of the Revised Administrative Code which prohibits areas already set aside by law as forest reserves to be reclassified as mineral reservation.

The court, however, stressed that the said arguments were not presented in any of its pleadings despite numerous opportunities to question the same.

The SC said even if it would consider SEM’s arguments, the same are not meritorious that would warrant the reversal of its ruling.

It explained that Proclamation No. 297 did not modify the boundaries of the Agusan-Davao-Surigao Forest Reserve “since mineral reservations can exist within forest reserves because of the multiple land use policy.”

“The bounds of a forest reservation remain intact even if, within the said area, a mineral land is located and thereafter declared as a mineral reservation,” the court added.

In the same ruling, the court also denied the separate motions filed by Apex Mining Co. Inc. and Balite Communal Portal Mining Cooperative asking it to direct the Mines and Geo-Sciences Bureau (MGB) to automatically accept their respective applications for exploration permits.