Senate OKs mining tax regime bill on third, final reading
The Senate has approved on third and final reading the measure prohibiting the export of raw minerals in a bid to develop local industries, create higher-value goods, and generate more jobs in the country.
Senate Bill No. 2826, if signed into law, will take effect after five years, according to Senate President Francis “Chiz” Escudero.
Under the bill, the Philippines will ban the export of locally-extracted raw minerals—similar to what Indonesia put in place in 2020 when it stopped the exportation of nickel ore and the bauxite in 2022.
“What we are looking at is to shift our policy from merely exporting raw minerals that will be utilized by other countries to produce higher value products, to developing our own processing capabilities. This will result in added value for our minerals-related exports,” Escudero said.
The five-year period in the measure is meant to provide the mining operators time to establish processing plants and downstream industries, the Senate leader explained.
He noted demand for critical minerals such as nickel and copper has increased over the past decades as a result of the development of green initiatives such as the production of electric vehicles (EVs).
“Nickel and copper are key components in the production of lithium batteries of EVs and if we can harness the potential of these minerals here in the country, we can secure our place in the global supply chain, particularly in the production of EV batteries and maybe someday, our very own EV,” Escudero said.
Other notable countries that have imposed a ban on raw export materials are Namibia, for unprocessed lithium and other critical minerals, and Zimbabwe for chromium.
Escudero said the motivation for states to adopt this policy is understandable and the economic benefits are quantifiable.
Once the law is enacted, the Senate chief said the government will do its part in helping industry players in putting up their respective mineral processing plants within the transition period.
The Philippines is one of the world’s biggest producers of nickel ore with a production of 35.14 million metric tons in 2023.