Earl Anthony R.

Reyes
11684615, G05

Case Digest: La Bugal-B’Laan Tribal Association, Inc. v. Ramos (Jan. 27, 2004; 421
SCRA 148)
Facts:
In 1987, former President Corazon Aquino issued E.O. No. 279, which authorized
the DENR Secretary to evaluate proposals from foreign investors or corporations for
either financial or technical assistance for large-scale exploration, development, and
utilization of minerals. After such evaluation, the DENR Secretary should issue a
recommendation to the President, and the latter shall consider the real contributions of
such proposal to the economic growth and general welfare of the country as well as the
development and use of local scientific and technical resources that will be promoted by
the proposed contract or agreement. Moreover, the capital investment for the proposal
should cost at least $50,000,000.
In 1995, former President Fidel V. Ramos approved R.A. No. 7942(Philippine
Mining Act of 1995.) The RA’s purpose was to govern the exploration, development,
utilization and processing of all mineral resources. It also defines the modes of mineral
agreements for mining operations, outlines the procedure for their filing and approval,
assignment/transfer and withdrawal, and fixes their terms and similar provisions govern
financial or technical assistance agreements. The law also prescribes the qualifications of
contractors and grants them rights for timber, water and easement, and to possess
explosives. It also forbids surface owners or concessionaires from preventing holders of
mining rights from entering private lands and concession areas and also regulates the
transport, sale and processing of minerals, and promotes the development of mining
communities, science and mining technology, and safety and environmental protection.
However, before the effectivity of the law, former President Ramos entered into a
Financial and Technical Assistance Agreement (FTAA) with WMCP (a corporation
organized under RP laws) covering 99,287 hectares of land in South Cotobato, Sultan
Kudarat, Davao del Sur and North Cotobato. In effect, the DENR secretary Victor Ramos
issued DENR Administrative Order No. 96-40, s. 1996, which repealed DAO No. 95-23,
s. 1995 or the Implementing Rules and Regulations of R.A. No. 7942
Due to the aforementioned actions of government, petitioners filed a petition for
prohibition and mandamus, with a prayer for a temporary restraining order. The
petitioners assailed that 100 FTAA applications have already been filed, which covers an
area of 8.4 million hectares, and 64 of the applications came from fully-foreign owned
corporations covering a total of 5.8 million hectares and at least one by a fully foreign-
owned mining company over offshore areas. The petitioners also assail that RA7942 is
unconstitutional for it violates: (a) Art. XII, Sec. 2(4); (b) Art. III, Sec. 1; (c) Art. XII,
Sec. 2(2) of the 1987 Constitution. Moreover, the petitioners also stated the WMCP is
owned by WMC Resources International Pty., Ltd., a wholly owned subsidiary of
Western Mining Corporation Holdings Limited, an Australian mining and exploration
company. However, WMCP averred that WMC sold all its shares in WMCP to
Sagittarius Mines, Inc, which is a 60% Filipino-owned company.

Issue: W/N R.A. 7942, which the petitioners believe that it encroaches on the rights of
Filipinos to exclusively utilize our natural resources, is unconstitutional

Ruling: Yes. The court stated that Art. XII, Sec. 2 of the 1987 enunciates that FTAA’s
should be limited to technical or financial assistance only and not to manage or operate
the exploitation of the country’s natural resources. The court stated the latin maxim
“Casus Omissus Pro Omisso” which means that if a person, object, or thing is omitted in
a statute, it must be held or considered to have been omitted intentionally. Thus, it can be
inferred that such management or operation of the resources by foreign individuals or
corporations is prohibited by the constitution. In the contention of respondents that
agreements involving technical or financial assistance (1987 Constitution) is just another
term for service contracts (1973 Constitution,) the court stated that the terms are not
synonymous with each other because the CONCOM intended to delete the term “service
contracts” from the 1987 Constitution. The reason for the deletion of such term by the
CONCOM was to avoid some of the abuses in the past regime in the use of service
contracts to go around the 60-40 arrangement. Moreover, it was also stated by certain
framers of the 1987 Constitution that the reason for changing such terms in the
Constitution was to make sure that Filipinos will remain to have exclusive rights on our
natural resources and that the sovereignty of the Philippines will not be affected.
Furthermore, the court also stated that although RA 7942 includes the term technical or
financial assistance, which is in accordance with the 1987 constitution, it is still
unconstitutional because RA 7942 still intended it to be for service contracts. Therefore,
the court declared some provisions of RA 7942 unconstitutional for it encroaches on the
rights of Filipinos to exclusively utilize our own natural resources.