Case Digest MONCAYO INTEGRATED SMALL-SCALE MINERS ASSOCIATION, INC. [MISSMA] vs, vs. SOUTHEAST MINDANAO GOLD MINING CORP G.R. No. 149638 December 10, 2014

MONCAYO INTEGRATED SMALL-SCALE MINERS ASSOCIATION, INC. [MISSMA], Petitioner,

vs. SOUTHEAST MINDANAO GOLD MINING CORP., JB. MGT. MINING CORP., PICOP RESOURCES, INC., MT. DIWATA UPPER ULIP MANDAYA TRIBAL COUNCIL, INC. AND BALITE INTEGRATED SMALL-SCALE MINING CORP., (BISSMICO),

G.R. No. 149638               December 10, 2014

On February 16, 1994, Marcopper assigned EP 133 to Southeast Mindanao Gold Mining Corporation (SMGMC).

On December 19, 1995, the Mines and Geo-Sciences Bureau director ordered the publication of SMGMC’s application for Mineral Production Sharing Agreement (MPSA No. 128) for the 4,941 hectares covered by EP 133.

JB Management Mining Corporation, Davao United Miners Cooperative, Balite Integrated Small Scale Miners Cooperative, MISSMA, PICOP, Rosendo Villaflor, et al., Antonio G. Dacudao, Puting Bato Gold Miners Cooperative, and Romeo Altamera, et al. filed adverse claims against MPSA No. 128.⁸

The adverse claims were anchored on DENR Administrative Order No. 66⁹ (DAO No. 66) issued on December27, 1991, declaring 729 hectares of the Agusan-Davao-Surigao Forest Reserve as forest land open for smallscale mining purposes, subject to existing and valid private rights.

Issues :

I. Whether the Court of Appeals can set aside the issue of forum shopping and litis pendencia (SMGMC's petition in G.R. No. 132475), and dwell on the merits;

II. Whether the DENR Secretary’s decision went beyond the PMRB’s decision, otherwise, whether the DENR Secretary can modify the PMRB’s decision; and

III. Whether the DENR Secretary’s modification to divide the 729 hectares into two areas contravened the mandate of the MAB decision and the purpose of Republic Act No. 7076. Subsequent developments

Ruling:

I. Moot and academic. Forum shopping and litis pendencia

Litis pendencia exists when the following elements are present: "(a) the identity of parties, or at least suchas representing the same interests in both actions; (b) the identity of rights asserted and relief prayed for, the relief being founded on the same facts; and (c) the identity of the two cases such that judgment in one, regardless of which party is successful, would amount to res judicatain the other."⁷⁶The existence of litis pendenciaalso means that the rule against forum shopping was violated.⁷⁷

Proclamation No. 297 dated November 25, 2002 excluded an area of 8,100 hectares in Moncayo, Compostela Valley as a mineral reservation and as an environmentally critical area: PROC. 297. to address the situation in the Diwalwal gold rush area.

This court denied the motions for reconsiderations, among others, in its 2009 resolution.⁸⁹ Since this court declared that EP 133 expired and its transfer to SMGMC is void, respondent SMGMC has no more basis to claim any right over the disputed 729 hectares in the Diwalwal gold rush area excluded from its MPSA.

Furthermore, since this court has declared that the DENR Secretary had no authority to issue DAO No. 66 declaring 729 hectares of the Agusan Davao-Surigao Forest Reserve as forest land open for small-scale mining purposes subject to existing and valid private rights, both the PMRB decision, and the DENR Secretary’s decision affirming it with modification, are consequently overturned for lack ofbasis in delineating the 729 hectares from the MPSA.

Indeed, then President Macapagal-Arroyo issued Proclamation No. 297 excluding an area in Moncayo, Compostela Valley, declaring this as a mineral reservation and as an environmentally critical area. DENR Administrative Order No. 2002-18 followed, declaring an emergency situation in this gold rush area and ordering the stoppage of all mining operations. Executive Order No. 217 thereafter created the National Task Force Diwalwal.

ISSUE II: Provincial Mining Regulatory Board

Section 24. Provincial/ City MiningRegulatory Board. There is hereby created under the direct supervision and control of the Secretary a provincial/city mining regulatory board, herein called the Board, which shall be the implementing agency of the Department, and shall exercise the following powers and functions, subject to review by the Secretary:

Issue III:DENR Secretary

. The Secretary through his representative shall exercise direct supervision and control over the program and activities of the small-scale miners within the people’s small-scale mining area

This court has distinguished the power of control and the power of supervision as follows:

. . . In administrative law, supervision means overseeing or the power or authority of an officer to see that subordinate officers perform their duties. If the latter fail or neglect to fulfill them, the former may take such action or step as prescribed by law to make them perform their duties. Control, on the other hand, means the power of an officer to alter or modify or nullify or set aside what a subordinate officer ha[s] donein the performance of his duties and to substitute the judgment of the former for that of the latter.¹⁰⁰ (Emphasis supplied)

League of Provinces v. DENR¹⁰¹  Since the DENR Secretary has power of control as opposed to power of supervision, he had the power to affirm with modification the PMRB’s decision.

Executive Department

Chapter II, Section 4 of Republic Act No. 7942 known as the Philippine Mining Act of 1995 also provides as follows:

SEC. 4. Ownership of Mineral Resources. – Mineral resources are owned by the State and the exploration, development, utilization, and processing thereof shall be under its full control and supervision. The state may directly undertake such activities or it may enter into mineral agreements with contractors.The State shall recognize and protect the rights of the indigenous cultural communities to their ancestral lands as provided for by the Constitution.¹⁰⁵

Apex Mining v. SMGMC discussed that "Section 5 of Republic Act No. 7942 is a special provision, as it specifically treats of the establishment of mineral reservations only.1âwphi1 Said provision grants the President the power to proclaim a mineral land as a mineral reservation, regardless of whether such land is also an existing forest reservation."¹⁰⁷

WHEREFORE, in view of the foregoing, the petitions are DENIED for being moot and academic.