Moncayo Integrated Small-Scale Miners Assoc. v. Southeast Mindanao Gold Mining Corp.

Facts:

This is a consolidated case involving Diwalwal Gold Rush Area” in Mt. Diwata, Mindanao and MISSMA.

The Bureau of Forest Development issued to Marcopper Mining Corporation (Marcopper) a prospecting permit covering 4,941 hectares within the Agusan-Davao-Surigao Forest Reserve. This forest reserve was instituted by Proclamation No. 369 issued by then Governor General Dwight F. Davis on February 27, 1931. Also, the Bureau of Mines and Geo-Sciences issued to Marcopper a permit to explore the same area.

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.

MISSMA et. al., filed an adverse claim which were were anchored on DENR Administrative Order No. 669 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.

The panel of arbitrators reiterated the validity of EP 133 and dismissed all adverse claims on MPSA No. 128. Both SMGMC and the adverse claimants questioned the Mines Adjudication Board’s decision before this court. These petitions were remanded to the Court of Appeals. Meanwhile, independent of the MAB decision and the appeals to the Court of Appeals and this court, the Provincial Mining Regulatory Board of Davao proposed to declare a People’s Small Scale Mining Area in accordance with the MAB decision. The notice for the proposed declaration was approved and issued for publication to notify any and all oppositors or protestors. The Provincial Mining Regulatory Board dismissed the oppositions for lack of merit, then segregated and declared the 729-hectare gold rush area as People's Small Scale Mining Area.

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.

Held:

Forum shopping and litis pendencia

Litis pendencia exists when the following elements are present: “(a) the identity of parties, or at least such as 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

judicata in the other.”

The existence of litis pendencia also means that the rule against forum shopping was violated.

Moot and academic

Apex Mining v. SMGMC ruled that “the State, through the Executive Department, should it so desire, may now award mining operations in the disputed area to any qualified entities it may determine [and] [t]he Mines and Geosciences Bureau may process exploration permits pending before it, taking into consideration the applicable mining laws, rules and regulations relative thereto.”

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.