The Chamber of Mines of the Philippines and the Philippine Nickel Industry Association (PNIA) are cautioning that a new administrative order governing natural resource contracts could create regulatory uncertainty and increase investment risks.
In a joint statement, both groups raised concerns over provisions in Joint Administrative Order 2026-01, issued by the Department of Environment and Natural Resources (DENR) and the Department of Energy (DOE). The order sets the framework for awarding service and operating contracts for natural resources.
The mining bodies said the order includes provisions requiring existing operators to turn over operational assets when contracts expire, even if those assets are privately owned. They also questioned bidding rules that account for closure liabilities and asset costs, noting these could disadvantage current operators.
Furthermore, the groups noted that the evaluation criteria give insufficient weight to proven technical capability, operational experience, and environmental performance.
“Policy stability and adherence to the rule of law are the bedrock for business and investment growth,” the groups wrote.
They warned that uncertainty over project financing and asset valuations could raise investment costs, undermining government efforts to attract investors and President Ferdinand Marcos Jr’s push to make mining a stronger pillar of economic development.
The groups add that potential impacts extend beyond mining, particularly as the Philippines is drawing strong foreign investor interest in the Pax Silica initiative.
“The country must not let this golden opportunity pass for questionable and even illusory gains,” the groups said.
The groups urged the government to ensure the order complies with existing laws and contractual rights, promotes fair and transparent competition, and supports long-term investment.
“We remain committed to constructive engagement with the DOE and the DENR to help achieve the government’s policy objectives,” the groups said.
The statement comes as the country’s largest coal producer, Semirara Mining and Power, decried ‘unfair’ bidding rules for coal operating contracts. The DOE has since responded, denying allegations that it is favouring any specific company in the upcoming bidding process.
Write to Paula Fabe at Mining.com.au
