‘New mining contract rules may be challenged in court’

MANILA, Philippines — A new government framework for evaluating and granting natural resources contracts may be challenged in court due to its contradiction to existing policies, according to DMCI Holdings Inc. chairman Isidro Consunji.

On the sidelines of the 2026 International Mining Conference and Exhibition, Consunji said the government must first address the apparent contradiction.

“They have to resolve the contradictions before it is implemented or else it will be challenged in court,” he told reporters.

When asked if the company would challenge the policy in court, Consunji said: “If it affects us adversely, we’ll probably have to challenge it.”

Joint Administrative Order (JAO) 2026-01 by the Department of Energy and the Department of Environment and Natural Resources establishes new guidelines, procedures and evaluation criteria for awarding contracts for natural resource projects, including coal and minerals.

Consunji argued that the new JAO appears inconsistent with existing contracts governing natural resource projects.

“I don’t think the JAO should supersede existing laws. There’s an apparent contradiction between the JAO and existing laws,” he added.

The tycoon’s statement came as mining groups criticized the new JAO, warning that it may create regulatory uncertainty and compromise investments into the sector.

“The JAO does not seem fair, they are changing the established agreement with mining companies. The operators have already signed a contract with the government and the JAO is changing that,” Consunji said.

He added that companies may also raise concern whether their equipment would still be under their ownership if their contract expires.

Consunji noted that public consultation for the new government policy has been rushed.

DMCI has interest in the mineral extraction sector through DMCI Mining Corp., which conducts nickel, chromite and iron laterite mining, and coal miner Semirara Mining and Power Corp.

Earlier, the Chamber of Mines of the Philippines (COMP) and the Philippine Nickel Industry Association questioned provisions that include required turnover of operational assets upon contract expiry and bidding rules that could disadvantage incumbent operators.

They also flagged new evaluation criteria that they said are biased against proven technical expertise, operational track records and environmental performance.

Meanwhile, COMP chairman Michael Toledo said the country must balance its push for mining investments with the need to build public trust in the industry.

“We are competing for investment, certainly, but we are also competing for credibility. Investors need predictable rules. Communities need protection, meaningful participation and tangible benefits. Government needs compliance and the Filipino public needs confidence that our mineral wealth is being developed in the national interest,” he said.