Philippine Miners Say New Rules Threaten to Raise Costs, Deter Pax Silica Investors
Key Takeaways
- •The Chamber of Mines of the Philippines and Philippine Nickel Industry Association said JAO No. 2026-01 could increase investment risks in the mining sector.
- •The groups objected to provisions involving asset surrender after contract expiry, bidding factors and evaluation criteria for mining operators.
- •The mining associations said the rules could undermine the government’s Ease of Doing Business efforts and its goal of expanding minerals’ economic role.
- •They called for the order to respect existing laws and contractual rights while promoting transparent competition and long-term investment.
- •The response of the environment and energy departments during implementation will be important for existing operators and prospective Pax Silica investors.
Philippine mining groups warned that newly issued rules for the industry threaten to deter investment by raising the cost of doing business, at a time when the government is seeking to attract interest in the sector under the Pax Silica initiative.
In a joint statement, the Chamber of Mines of the Philippines (CoMP) and the Philippine Nickel Industry Association (PNIA) said Joint Administrative Order (JAO) No. 2026-01, issued by the Department of Environment and Natural Resources and the Department of Energy — the agencies that respectively oversee the country's natural resources and energy sectors — would "introduce regulatory uncertainty" and add to "investment risks."
"Among the key concerns are the questionable provisions requiring incumbent operators to surrender operational assets upon contract expiry, even when these remain privately owned under the law; bidding rules that may disadvantage existing operators by factoring in closure liabilities and asset costs; and evaluation criteria that are biased against proven technical expertise, operational track records, and environmental performance," the groups said. In mining, closure liabilities refer to the costs of rehabilitating and securing a site once operations end.
The miners said the new regulatory framework runs counter to the direction of the government's Ease of Doing Business initiatives and could undermine its efforts to make minerals "a stronger pillar of economic development." The dispute lands at a sensitive moment for Pax Silica, an initiative premised on drawing fresh investor interest into the sector at precisely the time its governing rules are changing.
CoMP and PNIA said the government "needs to ensure that the JAO is consistent with existing laws and contractual rights, promotes fair and transparent competition, and supports the country's efforts to attract long-term investment." How the two departments respond to those calls as the order moves from issuance into implementation is the immediate point to watch for existing operators and prospective Pax Silica investors alike.
Reporting by Maria Mikaela H. Tormon; source: BusinessWorld
