The country’s leading mining groups welcomed the bicameral conference committee’s decision to remove the highly contentious ore export ban from the reconciled version of the bill seeking to reform the mining fiscal regime.

In separate statements on Wednesday, June 11, the Chamber of Mines of the Philippines (COMP) and the Philippine Nickel Industry Association (PNIA) threw their support behind the proposed Enhanced Fiscal Regime for Large-Scale Metallic Mining Act.

The measure, deemed a priority of the Marcos administration under the Legislative-Executive Development Advisory Council (LEDAC), seeks to establish a more equitable fiscal framework for large-scale mining operations in the country.

Specifically, it proposes a five-tier margin-based royalty system and a windfall profit system for the mining industry as a boon for the development of local industries.

One provision that drew strong criticism from mining groups is the proposed implementation of a ban on exporting locally extracted raw minerals. 

The ban, which was introduced in the measure’s Senate version, was supposed to take effect five years after the bill’s enactment. The minerals being considered for an export ban include gold, copper, iron, and nickel.

According to the World Trade Organization (WTO), even Japan and the United Kingdom (UK) expressed their concerns over this provision during an April meeting of the Council for Trade in Goods’ (CTG).

With the removal of this provision, the PNIA said this reflects a stronger understanding on the part of legislators of the challenges surrounding domestic mineral processing.

PNIA, the country’s largest group of nickel mining companies, said this makes the bill more prudent and forward-looking in protecting jobs and upholding investor confidence.

“We thank our policymakers for considering the concerns raised by various stakeholders and for choosing a path that safeguards economic stability while keeping the door open for long-term industrial development,” it said.

With the Philippines being the world's second-largest supplier of nickel ore, the group stated that the bill’s proposed fiscal reforms accurately reflect its actual business performance, while also aligning with international best practices.

“Fiscal predictability and economic rationality are essential to attract long-term investments and enable the growth of a competitive, responsible mining industry,” said PNIA.

COMP, for its part, said the reconciled measure’s shift to a tax regime based on profit margins and windfall earnings would allow the government to benefit more when global commodity prices rise.

This is without placing undue burden on miners during market downturns, it said.

“This framework offers a win-win outcome: it ensures fairer and more sustainable government revenues, encourages both local and foreign investment, and strengthens the Philippines’ role in the global clean energy supply chain,” said COMP.

Following the approval of the report reconciling the differing provisions of the bill in the bicameral conference committee, the bill needs to be ratified in the Senate and the House of Representatives. After this, the bill will then be transmitted to Malacañang for the president’s signature.

With the measure’s near enactment, PNIA is urging the government to address issues that continue to plague the local mining industry.

The group said persistent problems such as high energy costs, weak infrastructure, policy uncertainty, and permitting delays should be addressed to build a robust value-added processing sector in the country.

These issues, according to PNIA, “continue to deter large-scale investments in mineral processing.”