Celestial Mining v Macroasia Facts:

The S e c r e t a r y o f A g r i c u l t u r e a n d N a t u r a l R e s o u r c e s a n d M a c r o a i s a e n t e r e d i n t o a M i n i n g L e a s e C o n t r a c t for a term of 25 years. Celestial filed a Petition to Cancel the subject mining lease contracts and other mining claims of Macroasia before the Panel of Arbitrators (POA) of the Mines and Geo-Sciences Bureau (MGB) of the DENR. The POA granted the petition of Celestial to cancel theMining Lease Contracts of Macroasi a. It gave Celestialthe preferential right to Macroasias mining areas. H o w e v e r , t h e M A B f o u n d t h a t i t w a s B l u e R i d g e t h a t h a d prior and preferential rights over the mining claims of Macroasia. Both Celestial and Macroasia moved for reconsideration. M a c r o a s i a a l s o f i l e d i t s S u p p l e m e n t a l M o t i o n f o r Reconsideration questioning the jurisdiction of the POA in canceling mining lease contracts and mining claims. Macroasia averred that the power and authority to grant, cancel, and revoke mineral agreements is exclusively lodged with the DENR Secretary.MAB issued a Resolution vacating its prior decision and held that neither the POA nor the MAB had the power to r e v o k e a m i n e r a l a g r e e m e n t d u l y e n t e r e d i n t o b y t h e DENR Secretary; that there was no provision giving the P O A a n d M A B t h e c o n c u r r e n t p o w e r t o m a n a g e o r develop mineral resources Celestial assailed the MAB Resolution before the CA in a p e t i t i o n f o r r e v i e w b u t w a s d e n i e d . C A u p h e l d t h e exclusive authority of the DENR Secretary to approve, cancel, and revoke mineral agreements. C e l e s t i a l f i l e d a n o t h e r p e t i t i o n a s s a i l i n g t h e C A s Decision insofar as it granted Blue Ridges prior and preferential rights.

Issue:
Who has authority and jurisdiction to cancel existing agreements? mineral

Held:
Under RA 7942, the power of control and supervision of the DENR Secretary over the MGB to cancel or recommend cancellation of mineral rights clearly demonstrates the authority of the DENR S e c r e t a r y t o c a n c e l o r a p p r o v e t h e c a n c e l l a t i o n o f mineral agreements. Sec 7 of RA 7942 explicitly grants t h e a u t h o r i t y o f t h e M G B D i r e c t o r t o r e c o m m e n d cancellation to the DENR. As the MGB is under the supervision of the DENR Secretary, then the logical conclusion is that it is the D E N R S e c r e t a r y w h o c a n cancel the mineral agreements and not the POA nor the MAB. Sec. 77 of RA 794 merely grants the POA the jurisdiction to resolve any adverse claim, protest, or opposition to a pending application for a mineral agreement filed with the concerned Regional Office of the MGB. The power of the POA to resolve any adverse claim, opposition, or protest relative to mining rights under Sec. 77(a) of RA7942 is confined only to adverse claims, conflicts and o p p o s i t i o n s r e l a t i n g t o a p p l i c a t i o n s f o r t h e g r a n t o f mineral rights. POA s jurisdiction is confined only to r e s o l u t i o n s o f s u c h a d v e r s e c l a i m s , c o n f l i c t s a n d oppositions and it has no authority to approve or reject said applications. Such power is vested in the DENR Secretary upon recommendation of the MGB Director.