Miners push back on new system for evaluating resource contracts

MANILA, Philippines —  The country’s miners have raised concerns over a new government system for evaluating and granting natural resource contracts, warning that the new framework could compromise investments into the sector.

In a joint statement, the Chamber of Mines of the Philippines (COMP) and the Philippine Nickel Industry Association (PNIA) criticized the Department of Energy (DOE) and the Department of Environment and Natural Resources’ (DENR) Joint Administrative Order (JAO) 2026-01.

They stated that the order could create regulatory uncertainty and increase investment risks.

The groups highlighted the existence of certain “questionable  provisions” under the JAO, including the required turnover of operational assets upon contract expiry and bidding rules that could disadvantage incumbent operators.

COMP and PNIA have also raised concern over new evaluation criteria that they said are biased against proven technical expertise, operational track records and environmental performance.

The groups also stressed that policy stability and adherence to the rule of law are the bedrock for business and investment growth.

“If new and questionable provisions create uncertainty and fear and make investing costlier in terms of involving project financing and asset valuations, among other things, then the government’s efforts to attract investors and President Ferdinand Marcos Jr.’s ease of doing business agenda and his push to make the minerals industry as a stronger pillar of economic development would be for naught,” it added.

The two groups have urged the government to ensure that the new framework remains consistent with existing laws and contractual rights, promotes fair and transparent competition and supports the country’s efforts to attract long-term investments.

COMP and PNIA said the implications of the JAO extend beyond the mining sector, warning that it could weaken the country’s investment opportunities, especially those interested in Pax Silica.

It added that the country should not let “this golden opportunity pass for questionable and even illusory gains.”

“Attracting foreign direct investments is a priority and the JAO is not helping toward this end,” the groups said.

COMP and PNIA noted that it remains committed to conduct further constructive engagement with the DOE and the DENR to help achieve the government’s policy objectives.