LA BUGAL B�LAAN TRIBAL ASSOCIATION INC., et. al. v. V. O.

RAMOS, Secretary
Department of Environment and Natural Resources; H. RAMOS, Director, Mines and
Geosciences Bureau (MGB-DENR); R. TORRES, Executive Secretary; and WMC
(PHILIPPINES) INC.

The constitutional provision allowing the President to enter into FTAA is a

exception to the rule that participation in the nation�s natural resources is
reserved exclusively to Filipinos. Provision must be construed strictly against
their enjoyment by non-Filipinos.
RA 7942 (The Philippine Mining Act) took effect on April 9, 1995. Before the
effectivity of RA 7942, or on March 30, 1995, the President signed a Financial and
Technical Assistance Agreement (FTAA) with WMCP, a corporation organized under
Philippine laws, covering close to 100,000 hectares of land in South Cotabato,
Sultan Kudarat, Davao del Sur and North Cotabato. On August 15, 1995, the
Environment Secretary Victor Ramos issued DENR Administrative Order 95-23, which
was later repealed by DENR Administrative Order 96-40, adopted on December 20,
1996.
Petitioners prayed that RA 7942, its implementing rules, and the FTAA between the
government and WMCP be declared unconstitutional on ground that they allow fully
foreign owned corporations like WMCP to exploit, explore and develop Philippine
mineral resources in contravention of Article XII Section 2 paragraphs 2 and 4 of
the Charter.
In January 2001, WMC � a publicly listed Australian mining and exploration company
� sold its whole stake in WMCP to Sagittarius Mines, 60% of which is owned by
Filipinos while 40% of which is owned by Indophil Resources, an Australian company.
DENR approved the transfer and registration of the FTAA in Sagittarius� name but
Lepanto Consolidated assailed the same. The latter case is still pending before the
Court of Appeals.
EO 279, issued by former President Aquino on July 25, 1987, authorizes the DENR to
accept, consider and evaluate proposals from foreign owned corporations or foreign
investors for contracts or agreements involving wither technical or financial
assistance for large scale exploration, development and utilization of minerals
which upon appropriate recommendation of the (DENR) Secretary, the President may
execute with the foreign proponent. WMCP likewise contended that the annulment of
the FTAA would violate a treaty between the Philippines and Australia which
provides for the protection of Australian investments.