PHILIPPINES Law and Practice Contributed by: Patricia A O Bunye and Rafael Raymundo A Evangelista, Cruz Marcelo & Tenefrancia
1. Mining Law: General Framework 1.1 Main Features of the Mining Industry The Philippines is the fifth most mineralised coun - try in the world, with an estimated USD1 trillion in untapped reserves of copper, gold, nickel, zinc and silver. Recent statistics from the Philippine Mines and Geosciences Bureau (MGB) indicate that there are 60 operating metallic mines and 61 operating non-metal - lic mines in the country, employing around 291,672 workers. In 2024, total exports of minerals amounted to almost USD7.38 billion, and the MGB placed the gross production value for mining at PHP316.29 bil - lion. Gold is the largest contributor, replacing nickel and its related products, with an estimated production value of PHP126.36 billion for the 28,870 kilograms of gold produced in 2024. For the first semester of 2025, gross metallic produc - tion was at PHP140 billion. This is a 21.98% increase from the same period a year ago, primarily driven by higher global gold prices, increased output from operating mines, and favourable market and regula - tory conditions. 1.2 Legal System and Sources of Mining Law The Philippine legal system is a hybrid of both civil and common law. The civil law elements are primarily derived from the Spanish civil law system, while the common law elements are primarily derived from the Anglo-American system of the United States. Exam - ples of Philippine legal concepts derived from com - mon law include the doctrines of equity, estoppel, laches and stare decisis. The authority of Philippine courts is limited to the interpretation of law. Never - theless, the Philippine Supreme Court may reverse rulings of lower courts, and even abandon principles laid down in previous rulings. The mining industry in the Philippines is governed pri - marily by the Philippine Constitution and the Philip - pine Mining Act (the “Mining Act”) or Republic Act No 7942, including its Implementing Rules and Regula - tions (IRR). The executive branch, through agencies such as the Department of Environment and Natural Resources (DENR) and the MGB, also issues administrative
orders, memoranda and circulars, which, although they are not laws, form part of the regulatory frame - work of the mining industry. 1.3 Ownership of Mineral Resources Under the Philippine Constitution, the state owns all natural resources, including minerals. The Philippine Constitution also provides that the state has full con - trol and supervision over the exploration, develop - ment and utilisation of mineral resources. The state may undertake these activities directly or enter into co-production, joint venture or production-sharing agreements with Filipino citizens, or corporations or associations at least 60% of whose capital is owned by those citizens. The President of the Philippines may also enter into agreements with foreign-owned corporations, involving either technical or financial assistance for large-scale exploration, development and utilisation of minerals, petroleum and other min - eral oils. 1.4 Role of the State in Mining Law and Regulations As stated in 1.3 Ownership of Mineral Resources , the state has full control and supervision over the explora - tion, development and utilisation of mineral resources. Furthermore, the state may undertake these activities directly or may enter into co-production, joint ven - ture or production-sharing agreements with Filipino citizens, or corporations or associations at least 60% of whose capital is owned by those citizens. The President of the Philippines may also enter into agree - ments with foreign-owned corporations, involving either technical or financial assistance for large-scale exploration, development and utilisation of minerals, petroleum and other mineral oils. As discussed in 1.5 Nature of Mineral Rights , min- eral rights are granted under law through exploration permits (EPs), mineral agreements (MAs) and financial and technical assistance agreements (FTAAs), as well as quarry, sand and gravel, guano, gemstone-gather - ing permits and small-scale mining permits. 1.5 Nature of Mineral Rights As discussed in 1.3 Ownership of Mineral Resources and 1.4 Role of the State in Mining Law and Regula-
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