Celestial Nickel vs Macroasia

G.R. No. 169080

December 19, 2007
VELASCO, JR., J.
FACTS:
In 1973, Respondent Macroasia entered into a Mining Lease Contract
for a term of 25 years with the Secretary of Agriculture and Natural
Resources. Herein petitioner then filed a petition to cancel said contract as
well as other mining claims of respondent on numerous grounds. The Panel
of Arbitrators (POA) granted the petition and gave Celestial the preferential
right to Macroasias mining areas. On appeal with the Mines Adjudication
Board (MAB), it affirmed the ruling but transferred the rights to Blue Ridge
Mineral Corporation. In a motion for reconsideration, Macroasia questioned
the jurisdiction of POA in cancelling the mining lease contracts stating that
the power is exclusively lodged with the DENR Secretary. Subsequently, MAB
withdrew its prior decision upholding respondents contention. Petitioner and
Blue Ridge separately appealed. CA upheld the exclusive authority of the
DENR Secretary to approve, cancel, and revoke mineral agreements. Hence
this petition.
HELD:
It is only the Secretary of the DENR, not the POA, who has jurisdiction
to cancel mining contracts and privileges. Such power emanates from his
administrative authority, supervision, management, and control over mineral
resources under Chapter I, Title XIV of Book IV of the Revised Administrative
Code of 1987. It is the DENR, through the Secretary, that manages,
supervises, and regulates the use and development of all mineral resources
of the country. It has exclusive jurisdiction over the management of all lands
of public domain, which covers mineral resources and deposits from said
lands. It has the power to oversee, supervise, and police our natural
resources which include mineral resources. Derived from this is the power to
approve mineral agreements and necessarily to cancel or cause to cancel
said agreements.