SC favors PGMC on Palawan nickel claims
MANILA - The Supreme Court (SC) has denied motions for reconsideration filed by the operating unit of the Oriental Peninsula Resources Group and upheld its earlier decision favoring Platinum Group Metals Corp. (PGMC) in all 4 cases arising from the firms' fight for control over nickel mines in Palawan.
In a 23-page decision written by Justice Arturo Brion, the High Court's special second division also denied motions filed by Oriental Peninsula's subsidiary, Citinickel Mines and Development Corp., to refer the earlier decision to the SC en banc.
PGMC's legal counsel said the cases focused mainly on whether it was the Palawan Regional Trial Court (RTC) or the Department of Environment and Natural Resources' Panel of Arbitrators (POA) that had jurisdiction over the mining claim dispute.
The Palawan RTC had ruled in favor of PGMC, which said that Citinickel and its mining claim owner, Olympic Mines and Development Corp., violated PGMC's operating agreement with Olympic. This was after Olympic allegedly voided its agreement with PGMC and secretly signed a similar deal with Citinickel.
The POA, on the other hand, favored Citinickel and Olympic after claiming jurisdiction on the belief that the issue was a mining dispute instead of a simple civil case.
The SC then upheld the decision of the Palawan RTC. It said that the trial court, not any administrative agency, has the sole authority to resolve the issue. As a result, the 3 other cases stemming from the dispute were also ruled in favor of PGMC.
No more business
Should the High Court deny Citinickel's second motion for reconsideration, PGMC's counsel said the Palawan RTC will resume hearing to resolve 2 things: on who has the right to mine the property, and if PGMC is entitled to P50 million in damages.
"There is no need to ask the DENR to recognize the validity of the operating agreement since the court has already nullified the ruling of POA canceling the PGMC's operating agreement with Olympic--meaning the agreement is valid and subsisting," PGMC's counsel said.
Once the SC declares with finality its decision in favor of PGMC, the company will then ask the government to recognize its operating agreement so it can resume operations within 4 to 6 months.
At present, Oriental Peninsula has control over the Palawan nickel mines. In other words, if the High Court rules in favor of PGMC with finality, Oriental Peninsula will no longer have any business to pursue.
Oriental Peninsula earlier told the local bourse that it has fully used up the P804 million it raised from its initial public offering for mine site and camp development, land acquisition, and the construction of roads, bridges, and dams.
PGMC, however, claimed that Oriental Peninsula had never gained access to the nickel site while cases on the mining claim dispute were pending in the courts.
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What the Supreme Court has decided is the forum issue and not th
Dear Editor
How are you, I am one of the investors of Oriental Peninsula Resources, I don’t like the news today 11/10 issued at the here "SC favors PGMC on Palawan nickel claims"
regarding the PGMC and Oriental case should be clear as below:
Since this news will miss leading the truth of fact.
PGMC have no contract or any litigation with Oriental.
The case is between PGMC and Olympic Mines Development Corp. we are explain as below:
The Citinickel Mines and Development Corp. has rejected overtures by Platinum Group and Metals Corp. to continue as operator of the 2,000-hectare nickel-rich mining concession in Palawan , saying “it has no legal basis.”
As far as Citinickel is concerned, Platinum’s operating agreement with Olympic Mines and Development Corp. has been rescinded, Citinickel vice president Andy Pellera said.
Pellera said Platinum has been making overtures to proceed with the operating agreement after the Supreme Court has ruled that the Palawan Regional Trial Court has the jurisdiction to hear and decide on the issue of Platinum’s operating agreement with Olympic.
Pellera said Citinickel takes the position that the Supreme Court decision does not in any way compel the two parties to proceed with the operating agreement.
“What the Supreme Court has decided is the forum issue and not the validity of the operating agreement,” Pellera said.
In 2003, Olympic entered into an operating agreement with Platinum. In 2006, Olympic terminated the operating agreement due to Platinum’s alleged gross violations of its terms. Olympic sold its interest to Citinickel and issued a deed of assignment, which transferred to Citinickel its right under the operating agreement.
Pellera said Platinum is not in a position to operate the Palawan mining concession because of its poor track record and the cancellation by the Department of Environment and Natural Resources of its environmental compliance certificate and small-scale mining permit.
“It does not hold any legal basis to continue with the operating agreement,” he said.
The Second Division of the Supreme Court, by a vote of three to two, decided early this month that the Regional Trial Court of Palawan, not the panel of arbitrators of the Department of Environment and Natural Resources, has jurisdiction on the issue.
Citinickel plans to file a motion for reconsideration before the High Court. Citinickel holds that the Supreme Court decision does not in anyway alter the current situation, as it still owns the Mineral Production Sharing Agreement on the 2,000 hectare nickel-rich site in two towns in Palawan .
It is very clear that today (11/10) in your news need modify and tell the reader the Oriental Peninsula resources hold the MPSA (Mining Permit Sharing Agreement) signed with Government will follow their step to operate the mine site after election, and will not effect by PGMC and Olympic Small Scale Mining operating Agreement. Since this SSMP agreement is expired already.
Investors,
REA LIM