Dipidio Earth Savers Multipurpose Assoc. v.

Gozun
Facts:
July 25 1987, Pres. Corazon Aquino promulgated E.O. 297 that authorized the
DENR to accept, consider and evaluate proposals from foreign-owned corporations
involving environmental explorations and development.
In 1995, Pres. Ramos signed into law R.A. 7942 (An Act Instituting A New System of
Mineral Resources Exploration, Development, Utilization and Conservation otherwise known as the
Phil. Mining Act of 1995.) It was then supplemented by its Implementing Guidelines,

contained
in
DENR
Admin.
Order
23,
then
replaced
by
A.O. 96-40. However, earlier before RA 7942 was approved, Pres. Ramos entered
into
a
Financial and Technical Assistance Agreement with Arimico Mining Corporation
(AMC). AMC was later absorbed by Climax Mining Limited which is 90% Australianowned (later Climax-AMC).
The FTAA that was entered into by the Republic of the Philippines and CAMC
includes
(Sec. 76 of RA 7942) taking of private property to be studied and developed by the
private corporation.
The petitioners, an association of indigenous peoples organized under
Philippine law, as well as from other segments of the society, claim legal standing
alleging that they have personal and substantial claim (affirmed by the Court).
Furthermore, they assail that Sec 76 of RA 7942 and DAO 96-40 is unconstitutional,
for the grounds that it involves taking of private property without just
compensation. As required by the Constitution.
Issue:
Whether or not RA 7942 and its implementing rules and regulations are
constitutional.
Held:
No, RA 7942 and its IRRs are not unconstitutional in the sense that the
alleged unconstitutional provisions of the Act also provide that upon entry in private
property, the contractor (CAMC) may ask for the assistance of the State for
measures in acquiring the said property. This involves just compensation during
taking, as exercise of eminent domain, as deliberately provided in the Act and
supported by the Implementing Rules and the current FTAA involving CAMC.
Furthermore, since the CAMC is foreign-owned, it is said that they are not granted
the ownership of the lands because they are merely assisting in the government
project for the prescribed time entered in the FTAA. The State obtains ownership of
taken lands under the guise of eminent domain.