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    SR Metals Inc Vs Reyes

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    Tin Sagmon
    1) Several mining corporations were awarded small-scale mining permits by the provincial mining board to extract nickel and cobalt from a mining site. 2) They were found to have exceeded the annual production limit of 150,000 metric tons by the DENR and were issued a cease and desist order. 3) The issue is whether Section 1(1) of PD 1899, which sets the annual production limit of 50,000 metric tons for small-scale mining, was repealed by RA 7076. 4) The Supreme Court held that the production limit was not repealed, as the DENR has the authority to issue regulations on natural resources and had recently reaffirmed the 50,000 metric

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    SR Metals Inc Vs Reyes

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    Tin Sagmon
    740 views1 page
    1) Several mining corporations were awarded small-scale mining permits by the provincial mining board to extract nickel and cobalt from a mining site. 2) They were found to have exceeded the annual production limit of 150,000 metric tons by the DENR and were issued a cease and desist order. 3) The issue is whether Section 1(1) of PD 1899, which sets the annual production limit of 50,000 metric tons for small-scale mining, was repealed by RA 7076. 4) The Supreme Court held that the production limit was not repealed, as the DENR has the authority to issue regulations on natural resources and had recently reaffirmed the 50,000 metric

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    06. Sr Metals Inc vs Reyes

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    1) Several mining corporations were awarded small-scale mining permits by the provincial mining board to extract nickel and cobalt from a mining site. 2) They were found to have exceeded the annual production limit of 150,000 metric tons by the DENR and were issued a cease and desist order. 3) The issue is whether Section 1(1) of PD 1899, which sets the annual production limit of 50,000 metric tons for small-scale mining, was repealed by RA 7076. 4) The Supreme Court held that the production limit was not repealed, as the DENR has the authority to issue regulations on natural resources and had recently reaffirmed the 50,000 metric

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    © All Rights Reserved
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    740 views1 page

    SR Metals Inc Vs Reyes

    Uploaded by

    Tin Sagmon
    1) Several mining corporations were awarded small-scale mining permits by the provincial mining board to extract nickel and cobalt from a mining site. 2) They were found to have exceeded the annual production limit of 150,000 metric tons by the DENR and were issued a cease and desist order. 3) The issue is whether Section 1(1) of PD 1899, which sets the annual production limit of 50,000 metric tons for small-scale mining, was repealed by RA 7076. 4) The Supreme Court held that the production limit was not repealed, as the DENR has the authority to issue regulations on natural resources and had recently reaffirmed the 50,000 metric

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    of 1

    SR METALS INC V ANGELO REYES

    G.R. No. 179669


    June 04, 2014
    Del Castillo, J.
    Facts: On March 9, 2006, each of the petitioners was awarded a 2-year Small-Scale
    Mining Permit (SSMP) by the Provincial Mining Regulatory Board of Agusan del
    Norte; they were allowed to extract Nickel and Cobalt (Ni-Co) in a 20-hectare mining
    site in Sitio Bugnang, Brgy. La Fraternidad, Tubay, Agusan del Norte. The EMB sent
    the mining corporations a Notice of Violation informing them that they had
    exceeded the allowed annual volume of 150,000 MTs combined production as their
    stockpile inventory of Nickeliferous ore had already total 177,297 dry metric tons
    (DMT). This was based on the August 10, 2006 Inspection Report of the MGB
    Monitoring Team which conducted an inspection after the DENR received complaints
    of violations of small-scale mining laws and policies by the mining corporations. A
    technical conference was thereafter held to hear the side of the mining corporations
    anent
    their
    alleged
    over-extraction.
    On November 26, 2004, DENR Secretary Angelo T. Reyes issued a Cease and Desist
    Order (CDO) against the mining corporations suspending their operations for their
    operations.ChaA few days later or on November 30, 2006, DOJ Secretary Raul M.
    Gonzalez replied to Governor Amante citing DOJ Opinion No. 74, Series of 2006. By
    comparing PD 1899 to Republic Act (RA) No. 7076, a subsequent law that likewise
    defines small-scale mining, the DOJ opined that Section 1 of PD 1899 is deemed to
    have been impliedly repealed by RA 7076 as nothing from the provisions of the
    latter law mentions anything pertaining to an annual production quota for smallscale mining.
    Issue: Whether or not Section 1(1) of PD 1899 that sets the annual production limit
    of 50,000-MT on small-scale is already repealed by RA 7076?
    Held: No. Under Section 3(b) of RA 7076, small-scale mining refers to 'mining
    activities which rely heavily on manual labor using simple implements and methods
    and do not use explosives or heavy mining equipment. Significantly, this definition
    does not provide for annual extraction limit unlike in PD 1899. We do not, however,
    subscribe to the mining corporations averment that the 50,000-MTs production limit
    does not apply to small-scale miners under RA 7076. Recognizing the DENRs
    mandate to regulate the countrys natural resources under EO 192, both PD 1899
    and RA 7076 delegated to the DENR, thru its Secretary, the power to promulgate
    the necessary IRRs to give effect to the said laws. Significantly, the DENR in the
    exercise of such power had just recently resolved the question on the production
    limit in small-scale mining. On July 5, 2007, it issued DMC 2007-07 or Clarificatory
    Guidelines in the Implementation of the Small-Scale Mining Laws. By imposing the
    annual production limit of 50,000 DMT to both SSMPs issued under PD 1899 and
    Small-Scale Mining Contracts (SSMCs) under RA 7076.

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