Miners hit forced asset surrender rule
The country’s major mining groups are challenging new government rules that could force operators to surrender privately owned assets upon contract expiration, warning that the requirement threatens investor confidence and raises the cost of doing business in the mineral sector.
In a joint statement Thursday, the Chamber of Mines of the Philippines (COMP) and the Philippine Nickel Industry Association (PNIA) questioned provisions under DOE-DENR Joint Administrative Order No. 2026-01 that require incumbent operators to surrender operational assets even when these remain privately owned under existing laws.
The groups also flagged bidding rules that could disadvantage existing operators by factoring in closure liabilities and asset costs, alongside evaluation criteria that could undermine proven technical expertise, operational track records, and environmental performance.
“Policy stability and adherence to the rule of law are the bedrock for business and investment growth,” the groups said.
They warned that the new requirements could complicate project financing, affect asset valuations, and increase investment costs, potentially undermining President Ferdinand Marcos Jr.‘s Ease of Doing Business agenda and efforts to strengthen mining’s contribution to economic growth.
The groups cautioned that regulatory uncertainty could also weaken the country’s ability to attract foreign capital, particularly amid growing investor interest linked to Pax Silica.
“The country must not let this golden opportunity pass for questionable and even illusory gains,” the groups said.
They stressed that attracting foreign direct investments should remain a government priority, warning that the administrative order could work against this objective.
COMP and PNIA urged the Department of Energy and Department of Environment and Natural Resources to review the contested provisions to ensure consistency with existing laws and contractual rights while maintaining fair and transparent competition.
The groups said they remain open to working with regulators to address their concerns while supporting responsible mineral resource development.