PHILIPPINES Trends and Developments Contributed by: Patricia A O Bunye and Rafael Raymundo A Evangelista, Cruz Marcelo & Tenefrancia
The Philippines is the fifth-most mineralised country in the world, with an estimated USD1 trillion in untapped reserves of copper, gold, nickel, zinc and silver. Not - withstanding this, its mineral wealth remains largely untapped. Out of the estimated 30 million hectares of total land area, around nine million hectares have a high mineral potential. Only about 5% of the reserves have been explored, and mining contracts cover only about 3% of these areas. Recent statistics from the Philippine Mines and Geosciences Bureau (MGB) indicate that there are 60 operating metallic mines and 61 operating non- metallic mines, employing around 291,672 workers. In 2024, total exports of minerals amounted to almost USD7.38 billion, and the MGB placed the gross pro - duction value for mining at PHP316.29 billion, with a 0.51% contribution to the gross domestic product. The Philippines’ Role in the Global Energy Transition As the world shifts away from fossil fuels to renew - able energy (RE) sources, this comes with a surge in demand for critical minerals to capitalise on RE. Due to its abundant mineral deposits, the Philippines is in a strategic position to assume a critical role as a key supplier of these minerals, which include nickel, cop - per, cobalt and gold. However, the Philippine mining sector struggles to maximise its natural advantage, mainly due to a combination of environmental and social concerns and a lack of domestic processing capabilities. The most significant challenge is the critical environ - mental and social concern associated with large-scale mining, reflected in the strong public opinion from various religious and environmental groups, making it challenging to gain support for potential projects from community stakeholders. With respect to governance challenges, the Department of Environment and Natu - ral Resources (DENR) continues to work on improving and fast-tracking permitting processes in view of the previously identified bottlenecks that hinder project development and investment. The Philippines is primarily involved in the upstream extraction of raw ore and exports the same without refinement due to a lack of domestic processing capa -
bilities. There are various industry calls for more local refinement and building industrial capacity, without which the country will be unable to maximise its eco - nomic potential, thereby limiting whatever strategic leverage it has. Nonetheless, the potential to reap the benefits remains on the horizon with the country’s implementation of key developments in the mining sector. The govern - ment is working to create a stable policy environment to attract investments, signalled by its strong support for responsible mining practices. Enactment of the Enhanced Mining Fiscal Regime Law In September 2025, Republic Act No. 12253 (the “Enhanced Mining Fiscal Regime Law”) was signed into law. The law introduced measures designed to simplify and rationalise revenue collection from large- scale mining operations. The law introduced changes in royalty collections, the windfall profits tax, and the policy on ringfencing. Under the Enhanced Mining Fiscal Regime Law, the royalty rate for large-scale metallic mining operations is differentiated based on location with respect to min - eral reservations. Large-scale metallic mining opera - tions within mineral reservations shall be subject to a royalty rate of 5% of the gross output of the minerals or mineral products extracted or produced. On the other hand, large-scale metallic mining opera - tions outside mineral reservations shall be subject to a margin-based royalty on income observing the fol - lowing rates: (i) a minimum of 0.1% for a margin less than or equal to 0%; (ii) 1.0% for a margin over 0% but not over 15%; (iii) 2.0% for a margin over 15% but not over 30%; (iv) 3.0% for a margin over 30% but not over 45%; (v) 4.0% for a margin over 45% but not over 60%; and (vi) 5.0% for a margin over 60%. In addition, the Enhanced Mining Fiscal Regime Law created a windfall profits tax designed to maximise the government’s collection when mining compa - nies earn exceptionally high profits due to favourable market conditions. Large-scale metallic mining opera - tions shall pay an additional windfall profits tax on net income based on the following rates: (i) 1.0% for a
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