Draft EO seeks to extend mining permits to 25 years

MANILA, Philippines —  The government is drafting new rules to strengthen the implementation of the 1995 Mining Act with an executive order (EO) set for release early next year that will extend mineral processing permits to a fixed 25-year period.

Department of Environment and Natural Resources  Undersecretary Carlos Primo David said the planned EO would align the permits with large-scale mining contracts to give investors more long-term security.

“Right now, it is in DENR, to be transmitted to the Executive Secretary for basically clearance. Once it’s cleared and edits have been made, we do a stakeholder consultation to finalize the EO,” David said during his presentation at the Mining Philippines 2025 conference held at the Grand Hyatt Hotel in Taguig.

Under existing rules, mineral processing permits in the Philippines are valid for only five years and may be renewed in similar five-year increments for a total of up to 25 years.

The EO is meant to protect mining operations from abrupt policy changes including retroactive tax adjustments and new local ordinances that could restrict or halt activities.

He said the EO would also tighten enforcement of the “use it or lose it” policy for mining tenements, allowing the government to take back idle mineral assets and open them for redevelopment.

A separate administrative order will guide how these assets will be disposed of, David said.

To resolve disputes with indigenous communities, the measure will standardize valuation methods for royalty talks under the free and prior informed consent process, replacing the current open-ended system that has caused project delays.

The agency is also preparing a separate policy for the alternative registration of small-scale miners expected to be rolled out within the year.