Narra Nickel Mining and Dev’t Corp., et al. v. Redmont Consolidated Mines Corp., G.R. No.

195580,
21 April 2014

FACTS
Respondent Redmont Consolidated Mines Corp. (Redmont) took interest in mining and exploring certain
areas of the province of Palawan. After inquiring with the DENR, it learned that the areas where it wanted
to undertake exploration and mining activities were already covered by Mineral Production Sharing
Agreement (MPSA) applications of petitioners Narra, Tesoro and McArthur.

In the petitions, Redmont alleged that at least 60% of the capital stock of McArthur, Tesoro and Narra are
owned and controlled by MBMI Resources, Inc. (MBMI), a 100% Canadian corporation. As such, they are
disqualified from engaging in mining activities through MPSAs, which are reserved only for Filipino
citizens.

In their Answers, petitioners averred among others that they are qualified persons under Section 3(aq) of
Republic Act No. (RA) 7942. Additionally, they stated that their nationality as applicants is immaterial
because they also applied for Financial or Technical Assistance Agreements (FTAA) which are granted to
foreign-owned corporations

The Panel of Arbitrators (POA) issued a Resolution disqualifying petitioners from gaining MPSAs. The
resolution was affirmed by the CA. Hence this petition.

ISSUE:
Whether the filing of the FTAA application by Narra Nickel Mining and Dev’t Corp., et al., is an admission
that their corporation is not Filipino owned but rather of foreign nationality?

HELD:
SC ruled in the affirmative. The CA’s analysis of the actions of petitioners after the case was filed
against them by respondent is on point. Petitioners act of changing of application from one type to
another indeed stemmed from the case challenging their citizenship and to have the case dismissed
for being "moot".

Based on the history of this case and how petitioners responded to every action done by the court or
appropriate government agency, shows that the filing of the FTAA application is a clear admission
that the respondents are not capable of conducting a large scale mining operation and that they
need the financial and technical assistance of a foreign entity in their operation that is why they
sought the participation of MBMI Resources, Inc. The filing of the FTAA application conversion which
is allowed foreign corporation of the earlier MPSA is an admission that indeed the respondent is not
Filipino but rather of foreign nationality who is disqualified under the laws.