PHILIPPINES Trends and Developments Contributed by: Patricia A O Bunye and Rafael Raymundo A Evangelista, Cruz Marcelo & Tenefrancia
margin equal to 30% but not over 40%; (ii) 3.0% for a margin over 40% but not over 55%; (iii) 5.0% for a margin over 55% but not over 65%; (iv) 7.0% for a margin over 65% but not over 75%; and (v) 10.0% for a margin over 75%. The Enhanced Mining Fiscal Regime Law also intro - duced a mechanism to address issues related to ringfencing of large-scale metallic mining operations to prevent contractors and operators from offsetting losses in one project against profits in another project. The mechanism aims to ensure fairer revenue collec - tion by the government. Under this mechanism, a metallic mining contractor or operator, for purposes of reporting and tax obli - gations, shall be treated as a separate taxable entity with respect to each mineral agreement or financial or technical assistance agreement it holds or operates, and shall be responsible for the corresponding indi - vidual reporting and compliance requirements. ESG and Sustainable Mining Practices The Philippine mining sector is seeing increased focus on Environmental, Social and Governance (ESG) and sustainability compliance, driven by pressures from global standards and the government’s promotion of responsible practices. Previous developments in the industry include the adoption of the “Towards Sustain - able Mining” framework. Following this development, the DENR has issued an administrative order requiring mining companies to include biodiversity conservation and climate action in their social development and management pro - grammes. The directive aims to integrate the United Nations Sustainable Development Goals into the com - munity plans of mining companies.
In addition, the Philippine Securities and Exchange Commission released a draft Memorandum Circular in October 2025 on the Adoption of Philippine Finan - cial Reporting Standards on Sustainability Disclosures and Issuance of Reporting Guidelines for publicly listed companies and large non-listed entities, which cover mining companies. The draft Memorandum Cir - cular was designed to encourage sustainable busi - ness practices and align company disclosures with international standards to attract ESG-focused inves - tors in the Philippine capital market. Updates on Mining Projects Several major mining projects in the Philippines are progressing towards commercial operation. The Silan - gan copper and gold project, operated by Philex Min - ing, is on track to start commercial operations by the first quarter of 2026. The project has received an addi - tional capital infusion of USD1 billion. At full capacity, the Silangan project’s production is targeted to reach 12,000 tons per day in its twelfth year. On the other hand, earlier expectations of an increase in metallic production will take a step back as the Tampakan Mine, operated by Sagittarius Mines, now targets commercial operations by 2028, two years later than the initial 2026 target. The operation of the Tampakan Mine was previously delayed by the provincial ban on open-pit mining, which has since been declared to be without effect on the Tampakan Mine by the Court of Appeals. The Tampakan Mine is considered to be the largest undeveloped deposit in South-East Asia.
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