Driving critical mineral momentum for the green pivot

On June 11, the Congressional bicameral conference committee ratified the committee report on the disagreeing provisions of Senate Bill No. 2826 and House Bill No. 8937, also known as the Enhanced Fiscal Regime for Large-Scale Mining Act.

This piece of legislation affirms the strategic role of the mining sector and resolves a foundational issue for its revitalization. Specifically, it is a step toward updating a much-criticized tax structure that has caused decades of policy uncertainty for the industry. According to Senator JV Ejercito, the sponsor of the measure, the new fiscal regime is projected to contribute an additional P6 billion in revenues to the government.

Meanwhile, the Department of Finance (DoF) estimates a potential P25.06 billion in revenue within the next three years.

As one of the Legislative-Executive Development Advisory Council’s (LEDAC) priority measures for the 19th Congress. It is now for bill enrolment with the Speaker and Secretary General of the House of Representatives and the Senate President and Senate Secretary affixing their signature before it is to be transmitted to the Office of the President for signing into law.

Over nine million hectares of land with mineral potential can be found in the Philippines. However, this potential remains largely untapped due to persistent bureaucratic barriers and an unstable policy environment. The President has called on the government and private sector to work together to unlock this potential, recognizing that mining could play a major role in driving national economic growth.

The mining industry’s role is no longer confined to economics.

As the world accelerates its shift to green technologies to combat climate change, the demand for critical minerals has become a strategic geo-economic concern. These minerals — vital for solar panels, wind turbines, batteries, and electric vehicles — are essential to the global energy transition. The Philippines, with its vast untapped mineral reserves, is strategically positioned to help meet this growing global need. Unlocking the potential of the mining sector is an economic opportunity for the Philippines to become a key contributor to the global effort for “zero-carbon” emissions.

Bolstering this is the fact that the international community is taking notice.

For instance, Australian Ambassador to the Philippines Hae Kyong Yu announced that a delegation of 20 to 30 Australian mining companies will visit the Philippines in the second half of 2025 to explore opportunities in the extractive sector. According to her, this planned mission follows four previous Australian business missions over the past year, which reflects growing foreign investor interest since the Philippine government lifted the national moratorium on new mining agreements in 2021.

And then, the European Union (EU), in partnership with the Department of Environment and Natural Resources, announced that it is conducting a scoping study to identify potential sources of critical raw materials in the Philippines as part of a broader effort to promote sustainable resource utilization and attract European investment.

EU Ambassador to the Philippines Massimo Santoro emphasized that the study will not involve direct extraction but will instead develop a normative framework for sustainable mining, incorporating best practices from both sides and ensuring the protection of affected communities, especially indigenous peoples. The initiative stems from a mutual commitment made during President Ferdinand “Bongbong” Marcos, Jr.’s meeting with EU President Ursula von der Leyen in July 2023, where both parties underscored the importance of strengthening the local mining sector while upholding environmental and social standards. With critical raw materials essential to sectors like defense, digitalization, and the green economy, the EU seeks to diversify its supply chains amid geopolitical uncertainties, aligning with its Critical Raw Materials Act to maintain industrial competitiveness.

South Korean Industry Minister Ahn Duk-geun also recently met with Secretary Frederick Go, Special Assistant to the President for Investment and Economic Affairs, to discuss strengthening bilateral cooperation in trade, investment, and supply chains amid shifting global trade dynamics. Both officials reaffirmed their commitment to enhancing collaboration, particularly in critical minerals, in line with the memorandum of understanding signed between South Korea and the Philippines in 2024 on the development of supply chains for essential minerals.

Amid all these, the Maharlika Investment Corp. (MIC) announced that it is positioning itself as a co-investment vehicle for sovereign wealth funds (SWFs) interested in the Philippines’ mining sector. MIC President and CEO Rafael Consing, Jr. revealed that an SWF “near Asia” is already eyeing the country’s extractive industry and that MIC could help consolidate and present viable mining projects for co-investment.

Given all these developments, the prospects for the revitalization of the mining industry are encouraging. Momentum is building, and we now look forward to the President’s signing of the Enhanced Fiscal Regime into law.

The ratification of the Enhanced Fiscal Regime for Large-Scale Mining is a critical breakthrough, but there are complex challenges that must be addressed. The government must swiftly finalize a coherent Critical Minerals Framework, streamline permitting, crack down on non-performing mining tenements, and create conducive conditions for responsible, large-scale investment. With global demand for critical minerals rising and international partners signaling deep interest, the Philippines has a narrow window to position itself as a key player in the green energy transition. If we get this right, mining can move from being a perennial point of contention to a driver of sustainability and inclusive growth — not just for the country, but for the world.