IRAC
Anne Bustamante | Gela Gaffud | Noel Geologo | Kaye Rosario| Karen Umangay
Narra v Redmont
G.R. No. 195580 April 21, 2014
Facts:
Respondent Redmont Consolidated Mines Corp. (Redmont), a Filipino corporation, wanted to undertake mining activities in Palawan but discovered that the areas it sought to explore were already covered by the Mineral Production Sharing Agreement (MPSA) applications of petitioners Narra Nickel Mining and Development Corp. (Narra), Tesoro Mining and Development, Inc. (Tesoro) and McArthur Mining, Inc.(McArthur).
On January 2, 2007, respondent filed petitions for the denial of said applications before the Panel of Arbitrators (POA) of the Department of Environment and Natural Resources (DENR), alleging that MBM Resources, Inc. (MBMI), a 100% Canadian corporation, owns and controls at least 60% of the petitioners’ capital stock. Hence, under the Constitution1, they are disqualified from engaging in mining activities through MPSAs and may only enter into Financial or Technical Assistance Agreements (FTAA).
On June 15, 2007, petitioners had their individual MPSA applications converted to FTAAs, which were granted, but were subsequently revoked on April 6, 2011.
Petitioners averred that: (1) they are “qualified persons” under the Philippine Mining Act of 1995 (Mining Act)2; (2) their nationality is immaterial because they also applied for FTAAs; (3) under the “control test,” they are Philippine nationals since Filipinos own 60% of their capital; (4) POA has no jurisdiction over the issues in respondent’s petition; and (5) respondent has no personality to sue them.
Procedural History:
On December 14, 2007, the POA issued a Resolution disqualifying petitioners from gaining MPSAs. Petitioners appealed with the Mines Adjudication Board (MAB), which reversed the POA Resolution. Respondent appealed the MAB decision before the Court of Appeals (CA), which: (1) ordered the reversal of the MAB decision; (2) upheld the POA Resolution because
Narra v Redmont
G.R. No. 195580 April 21, 2014
Facts:
Respondent Redmont Consolidated Mines Corp. (Redmont), a Filipino corporation, wanted to undertake mining activities in Palawan but discovered that the areas it sought to explore were already covered by the Mineral Production Sharing Agreement (MPSA) applications of petitioners Narra Nickel Mining and Development Corp. (Narra), Tesoro Mining and Development, Inc. (Tesoro) and McArthur Mining, Inc.(McArthur).
On January 2, 2007, respondent filed petitions for the denial of said applications before the Panel of Arbitrators (POA) of the Department of Environment and Natural Resources (DENR), alleging that MBM Resources, Inc. (MBMI), a 100% Canadian corporation, owns and controls at least 60% of the petitioners’ capital stock. Hence, under the Constitution1, they are disqualified from engaging in mining activities through MPSAs and may only enter into Financial or Technical Assistance Agreements (FTAA).
On June 15, 2007, petitioners had their individual MPSA applications converted to FTAAs, which were granted, but were subsequently revoked on April 6, 2011.
Petitioners averred that: (1) they are “qualified persons” under the Philippine Mining Act of 1995 (Mining Act)2; (2) their nationality is immaterial because they also applied for FTAAs; (3) under the “control test,” they are Philippine nationals since Filipinos own 60% of their capital; (4) POA has no jurisdiction over the issues in respondent’s petition; and (5) respondent has no personality to sue them.
Procedural History:
On December 14, 2007, the POA issued a Resolution disqualifying petitioners from gaining MPSAs. Petitioners appealed with the Mines Adjudication Board (MAB), which reversed the POA Resolution. Respondent appealed the MAB decision before the Court of Appeals (CA), which: (1) ordered the reversal of the MAB decision; (2) upheld the POA Resolution because