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Friday, June 06, 2008

 

CA settles mining row, affirms
claim of Olympic in Palawan

Itawes Mining Exploration argues it was deprived of due process

By William B. Depasupil, Reporter

THE Court of Appeals (CA) has affirmed the validity of the mining claims of Olympic Mines and Development Corp. over 2,212 hectares of land in the province of Palawan.

The CA 12th Division, in a 23-page decision penned by Associate Justice Ramon Garcia, dismissed the bid of Itawes Mining Exploration to conduct mining operations in San Isidro, Narra, Palawan and Pulot, Espanola, Palawan, which were previously covered by the mining contracts of Atlantic City Exploration, Mondo Exploration Corp. and Toronto Exploration Corp.

The three mining firms, however, transferred their rights and interests on all their mining claims to Olympic on May 8, 1996. Olympic transferred its rights over the said areas on June 9, 2006, to its successor-in-interest Citinickel Mines and Development Corp.

The appellate court, however, said it couldn’t grant the petition of Itawes seeking to cancel the Mineral Production Sharing Agreement (MPSA) issued by the Department of Environment and Natural Resources (DENR) to Citinickel on January 3, 2007 for being contrary to law.

The CA noted that its jurisdiction in a petition for review is confined only to issues that were raised before a quasi-judicial body, or in this case, the Mines Adjudication Board (MAB).

“The Court’s appellate review, therefore, is limited only to the errors of fact and law that may have been committed by the said body. We cannot take cognizance of factual matters that were not raised before the administrative body, in this instance, the Mines Adjudication Board,” the CA said.

It stressed that the main issue brought before the adjudication board and now the subject of the petition for review, is whether or not the MPSA applications or respondent Olympic are valid and subsisting.

In assailing the decision of the board, Itawes argued that it was deprived of due process of law when the board affirmed the decision of the panel of arbitrators of the DENR-Mines and Geosciences Bureau (MGB) finding its applications for MPSA over the subject mining areas null and void and upholding the validity of Olympic’s application.

The Court of Appeals noted that Itawes actively participated in the proceedings both before the panel of arbitrators and the MAB. The Court of Appeals added that the petitioner even submitted its position papers, memorandum and pieces of documentary evidence in support of its claim.

The CA also found no merit on the petitioner’s insistence that the panel of arbitrators and MAB should have not admitted as evidence the three separate deeds of assignment since these were spurious and mere fabrications.

The CA said the panel of arbitrators has no jurisdiction to determine the validity of the deeds of assignments since its mandate is confined only to the adjudication of mining cases that concern matters that are purely administrative in nature.

Records showed that in August 26 and August 30, Itawes filed two separate applications for exploration permit over areas covered by the mining lease contracts of Atlantic, Mondo and Toronto, which was covered in the MPSA applications of Olympic.

On August 31, 2005, Itawes filed before the panel of arbitrators a petition seeking to declare null and void Olympic’s applications for MPSA.

In a resolution dated May 16, 2006, the panel of arbitrators declared Itawes’ applications null and void while Olympic’s applications were declared valid.

The MAB affirmed the said resolution, prompting Itawes to elevate the case before the CA.

Concurring with the ruling were Associate Justices Juan Enriquez Jr. and Isaias Dicdican.

   

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