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Facts:
The case involves the Diwalwal Gold Rush Area
(Diwalwal), a rich tract of mineral land
located inside the Agusan-Davao-Surigao Forest Reserve in Davao
del Norte and Davao Oriental. Since the early 1980s, Diwalwal has
been stormed by conflicts brought about by numerous mining
claims over it. Such land was later on declared as a mineral
reservation and as an environmentally critical area by virtue of
Proclamation No. 297
On March 10, 1986, Marcopper Mining Corporation (MMC)
was granted an Exploration Permit (EP 133) by the Bureau of Mines
and Geo-Sciences (BMG). A long battle ensued between Apex and
MMC with the latter seeking the cancellation of the mining claims of
Apex on the ground that such mining claims were within a forest
reservation (Agusan-Davao-Surigao Forest Reserve) and thus the
acquisition on mining rights should have been through an
application for a permit to prospect with the BFD and not through
registration of a DOL with the BMG. When it reached the SC in 1991,
the Court ruled against Apex holding that the area is a forest reserve
and thus it should have applied for a permit to prospect with the
BFD. On February 16 1994, MMC assigned all its rights to EP 133 to
Southeast Mindanao Gold Mining Corporation (SEM), a domestic
corporation which is alleged to be a 100%-owned subsidiary of
MMC. Subsequently, BMG registered SEMs Mineral Production
Sharing Agreement (MPSA) application and the Deed of
Assignment. Several oppositions were filed.
Apex and Balete asks the Court to order MGB to accept its
application.
Issues:
1. W/N SEM has a vested right over the disputed area by virtue
of Exploration Permit 133 which was subsequently
transferred by Marcopper to SEM.
2. W/N Proclamation No. 297 declaring the disputed area as
mineral reservation was constitutional.
3. Who (among petitioners Apex and Balite) has priority right
over Diwalwal?
Held/Ratio:
1. NO. Contrary to SEMs contention, that relied on the cases of
Mac Donald and Greek Mining Corporation, the company
had not acquired a perfected right. In two cases, Mac Donald
and Mining Corp, had vested right by virtue of Philippine Bill
of 1902, stating that the mining claim under this Bill is
property in the highest sense of that term, which may be sold
and conveyed, and will past by descent and not subject
therefore to the disposal of the Government.
EXPLORATION PERMIT
INTO A VESTED RIGHT
DOES
NOT
RIPEN