THE Supreme Court (SC) has nullified the ordinances passed by the municipal government of Abra de Ilog and the provincial government of Occidental Mindoro completely banning large-scale mining in the area.
In a 31-page decision promulgated on January 14, 2025 but only made public last Wednesday, the Court en banc, through Senior Associate Justice Marvic Leonen, struck down the 25-year moratorium on large-scale mining passed by Abra de Ilog’s municipal council and a subsequent provincial ordinance, saying it exceeded their powers and violated Republic Act 7942, or the Philippine Mining Act of 1995.
The local legislations imposed a 25-year moratorium on large-scale mining within the municipality of Abra de Ilog and the province. Abra de Ilog’s municipal ordinance was approved by the Sangguniang Panlalawigan of Occidental Mindoro on July 14, 2008.
The ruling stemmed from a case filed by Agusan Petroleum and Mineral Corporation, which argued that the ban violated its exclusive rights to mine in Mamburao and Abra de Ilog under a government-approved Financial or Technical Assistance Agreement (FTAA).
Under the FTAA, Agusan Petroleum is given the exclusive right to explore, mine, utilize, and market minerals that may be derived from over 46,000 hectares of land in Baco, San Teodoro and Puerto Galera in Oriental Mindoro, and Mamburao and Abra de Ilog in Occidental Mindoro.
Agusan claimed the ordinances interfere with the state’s ownership and control over the exploration, development, and use of the country’s mineral resources. It also pointed out that RA 7942 already provides environmental safeguards, so a total ban was unnecessary.
The provincial government countered that the assailed local legislations are valid exercises of the police power of local government units and only temporarily regulate large-scale mining.
The municipality of Abra de Ilog asserted that other local government units of territories covered in the contract area should have been impleaded.
Further, it asserted that there was no consultation with the affected inhabitants and local government units before the FTAA, that the FTAA could not prevail over the expressed will of the people through the local governments, and that the declaratory relief sought by Agusan Petroleum was not a proper remedy.
The Regional Trial Court (RTC) of Mamburao sided with Agusan Petroleum, ruling that the assailed ordinances are “unconstitutional and contrary to law.”
This prompted the provincial government to bring the case to the High Court, arguing that the ordinances were a valid exercise of its police power since their purpose was to protect the environment and the lives and safety of its residents.
It also claimed that RA 7942 recognizes certain areas closed to mining activities, such as those “areas expressly prohibited by law.” It argued that “law” includes ordinances passed by local government units.
However, the SC upheld the RTC’s ruling and clarified that large-scale mining and exploration of mineral resources are legal under the 1987 Constitution and RA 7942.
It also emphasized that it is the state’s duty to promote these activities to support national development, while also ensuring environmental protection and safeguarding the rights of affected communities.
The SC further explained that all mining applications must undergo environmental impact assessments, which include prior consultations with LGUs, adding that RA 7942 gives the LGUs the power to approve or deny individual mining applications based on their effects on the environment, livelihoods, and land rights of their residents.
However, the High Court held that the law does not authorize them to impose a blanket ban on all large-scale mining in their area and that each mining application must be evaluated on a case-by-case basis.
“It can be gleaned-under Republic Act No. 7942 and its 2010 Revised Implementing Rules, as well as Republic Act No. 7160-that a local government unit has no authority to ban all large-scale mining activities within its territorial jurisdiction but must attend to each application for mining activities separately, in view of the required prior informed consent,’ read part of the SC ruling.
The SC stressed that large-scale mining, including the exploration of mineral resources, are legal under the Constitution and RA 7942.
