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Wednesday, April 30, 2008

 

Paper firm scores SC 
ruling on mining contracts

High court’s decision paves way for ZTE Corp. to explore Diwalwal Gold Rush area

By William B. Depasupil Reporter

THE Supreme Court Third Division’s ruling cancelling all mining contracts within the Diwalwal Gold Rush Area may have handed the common ownership of Filipinos over natural resources to small groups of “tribesmen.”

In a 37-page manifestation, with an urgent appeal for referral of its case to the High Court en banc, a paper manufacturing firm, the Picop Resources Inc., urged the Court en banc to take a second look at November 29, 2006 ruling of the High Court’s Third Division, which, it claimed, radically altered long-standing principles of law and legal doctrines.

Meanwhile, the Court en banc has already taken cognizance of the appeal of Southeast Mindanao Gold Mining Corporation to deliberate and subsequently reverse the June 23, 2006 decision of the First Division that cancelled all mining operations within the Diwalwal Gold Rush Area, which apparently paved the way for Malacañang to negotiate a deal with controversial Chinese firm, ZTE Corp. to conduct mining operations in the 8,100-hectare mine site.

It was Trade and Industry Secretary Peter Favila who negotiated the ZTE deal in behalf of the government.

Southeast Gold was prompted to file a motion seeking to elevate the case to the High Court en banc after the ZTE deal cropped up during the Senate investigation on the controversial national broadband deal, which was supposed to be undertaken also by the Chinese firm.

During the Senate probe, it was revealed the government signed an agreement with ZTE for mining operations in Diwalwal on July 12, 2006. The hasty move came barely a month after a June 23, 2006 ruling by the High Court’s First Division dismissed a suit by local firms pursuing their own mining claims over the disputed mining site in Mindanao.

Picop said that aside from seriously limiting the validity of presidential issuances, the said ruling is also defective because it virtually grants to certain individuals claiming to be part of an indigenous people’s group “private rights” over forestlands, which are traditionally owned by the state.

Otherwise, all development programs of the government may be held hostage, even to groups of armed men who can hide under the convenient mask of being part of an indigenous cultural community, Picop said.

Picop warned that the decision declaring the 1969 Contract with Presidential Warranty null and void “opened up 12 million hectares of the country’s forest reserves, 40 percent of the country’s land area, to certificate of ancestral domain titles where the above-listed government agencies have no legal basis for jurisdiction, and may have the unintended consequence of such areas being independent enclaves with their own armed components.”

Picop lamented that the November 29, 2006 decision “had modified or reversed the doctrine or principle of law established in earlier decisions of the Supreme Court en banc that forest reserves cannot be the subject of private appropriation.”

“This doctrine is premised on the Regalian doctrine enshrined not only in 1935 and 1973 Constitution, but also in the 1987 Constitution, Article XII of which provides that . . . All lands of the public domain, waters, minerals, coal, petroleum and other mineral oils . . . forest or timber . . . and other natural resources are owned by the State. With the exception of agricultural lands, all other natural resources shall not be alienated,” Picop stressed.

   

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