Jorge Gonzales and Panel of Arbitrators vs Climax Mining Ltd, Climax-Armico Mining Corp. and Autralasian Philippines Mining Inc.

By ResIpsaLoquitor -
Jorge Gonzales and Panel of Arbitrators vs Climax Mining Ltd, Climax-Armico Mining Corp. and Autralasian Philippines Mining Inc.

GR No. 161957                                                                            February 28,2005

Facts:
Gonzales as a claimowner of mineral deposit, entered into a joint-venture via Production-Sharing Letter-Agreement(First Contract) with Geophil Inc. (Geo) and Inmex Ltd. (Inmex) giving Geo and Inmex 36 months (which was thereafter extended), to develop, operate, mine and exploit the mining claims of Gonzales. Thereafter, Gonzales, Armico, Geo, Inmex and Aumex signed an Addendum Contract (Second Contract) allowing Armico to apply for FTAA. Climax, Climax-Armico and Australasian then executed a Financial Accomodation Contract (Third Contract) and Assignment Accession Agreement (Fourth Contract) between Climax-Armico and Australasian and Memorandum of Agreement (Fifth Contract) between Climax-Armico and Australasian transferring the mining claim to Australasian. Gonzales sought the nullity of the the Second Contract, FTAA, Third Contract, Fourth Contract, and Fifth Contract with preliminary injunction with the Mines and Geosciences Bureau-DENR (MGB-DENR).

Issue:
Whether or not MGB-DENR has jurisdiction over the case.

Ruling:
No, the case is not a dispute involving rights to a mining areas, nor a dispute involving claim holders or concessionaires. The issue involves a judicial question, which involves the determination of what the law is and what are the legal rights of the parties with respect to the matter in controversy and therefore,  within the jurisdiction of regular courts.

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