Philippine Mining Policy Gets a Fresh Lift
What’s up? After a long pause, President Rodrigo Duterte has lifted a 9‑year ban on new mineral agreements, opening the door for fresh mining investments. The move comes as the country seeks to boost state revenues to fund infrastructure and other projects.
Background
- The moratorium was put in place back in 2012 while lawmakers worked on legislation to raise the government’s share of mining income—a big step given the Philippines ranks near the top globally for nickel, copper, and gold.
- In 2018, a tax reform doubled the excise tax on minerals to 4 %, so the government was chasing ways to squeeze more revenue out of the mining sector.
Executive Order Details
- Issued on April 15 (signed the day before), the order authorizes the Department of Environment and Natural Resources (DENR) to draft new agreements for future mining projects.
- It also mandates a review of existing contracts to see if they can be renegotiated for better terms.
- DENR’s dual mission: maximize revenue while ensuring strict mine safety and adherence to environmental policies.
Impact on the Economy
- The Philippines is the biggest supplier of nickel ore to China, one of the world’s most demanding metals consumers.
- Despite abundant resources, less than 5 % of all mineral reserves have been mined so far, so there’s plenty of headroom for growth.
- Pro‑mining officials say a softer stance on new open‑pit mines could spur job creation and infrastructure funds.
Global Context
- With global demand for nickel, copper, and gold on the rise, the Philippines’ reopening of mining agreements could position it as a pivotal supply hub.
- However, the country must keep pace with international environmental standards to avoid reputational damage.
Criticisms and Reactions
- Past environmental mismanagement cases have ignited a loud lobby against mining, led by local governments, legislators, advocacy groups, and even the Catholic Church.
- President Duterte had previously warned miners to tighten their environmental rules or face shutdowns.
- Some senior officials urged a softer policy, but Duterte stayed firm on banning new open‑pit mines—at least for now.
Bottom line: Philippine mining receives a second chance, but the government must keep an eye on the environment. Will the lands and people thrive, or will new regulations drown the industries? Stay tuned—this is as thrilling as a mining adventure!
