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re: goblins onto it early PHIL MINING
MANILA, Dec 1 AFP - In a landmark decision, the Supreme Court reversed itself today by upholding a law opening up the Philippine mining industry to foreign investment.
The decision will potentially open the door to billions of dollars in foreign investment in the country's underperforming mining sector which was previously restricted only to locally-controlled entities.
The court reversed its decision in January when it had struck down as unconstitutional the 1995 Mining Act.
Reinstating the law means that 100 per cent foreign ownership would now be allowed in the mining sector.
The earlier ruling had cited a constitutional provision that requires companies exploiting natural resources to be majority-controlled by Filipino entities.
However, the court, voting 10-4, ruled Wednesday that the Financial-Technical Assistance Agreement (FTAA) that foreign companies can enter into with the government as part of the Mining Act, was legal.
The constitution "expressly provides that the state may undertake this kind of activity, exploration and development by agreement with foreign-owned corporations involving technical or financial assistance," the decision read.
The charter "expressly allows service contracts in large-scale exploration, development and utilisation of minerals and mineral oils," it added.
By law, the president still retains and exercises "full control of mining operations" but can enter into agreements with foreign companies, the court ruled.
AFP it/

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