MANILA, Philippines — President Ferdinand Marcos Jr. has approved a framework to develop the Philippines’ critical minerals industry, directing the government to identify new mineral deposits, fast-track the privatization of government-owned mining assets and cancel dormant or noncompliant permits.
Executive Order No. 122 directs the Department of Environment and Natural Resources (DENR), through the Mines and Geosciences Bureau, to implement a national exploration and mineral reservation program for critical minerals.
The order aims to expand the exploration, development, processing and use of minerals considered essential to clean energy technologies, advanced manufacturing, digital infrastructure, national defense and other strategic industries.
The EO does not identify specific minerals, but the Philippines has significant deposits of nickel, copper, cobalt, chromite and zinc.
The order also requires the government to accelerate the disposition and privatization of government-owned critical mining assets. The DENR, MGB and the Privatization and Management Office under the Department of Finance will coordinate the process.
It also establishes a “use it or lose it” policy for critical mineral permits and licenses. Permits found in material noncompliance with approved timelines, work programs or development commitments may face cancellation or other sanctions unless the delays result from force majeure or circumstances beyond the contractor’s control.
The order promotes investments in mineral processing and downstream industries, while allowing mineral ore exports without imposing a general export restriction. Local processing plants will receive priority access to minerals at fair, market-based prices.
Environmental groups and science advocates criticized the policy, saying it could prioritize mining investments over environmental protection and community livelihoods.
Cathleen De Guzman, national coordinator of the Kalikasan People’s Network for Environment, said the group supports development but opposes projects that displace communities and damage the environment.
Advocates of Science and Technology for the People spokesperson Giovanni Tapang also criticized the order, saying the government should develop a domestic mineral industry based on Philippine industrial and agricultural needs rather than global demand.
Tapang also raised concerns about provisions that shorten public consultation periods for mining applications and streamline regulatory processes through a virtual one-stop shop.
The Chamber of Mines of the Philippines, however, welcomed the order, saying it could move the industry beyond raw ore extraction toward processing and downstream manufacturing.
The group said the order’s focus on regulatory consistency, transparency, digitalization and value-added processing could attract investment, create jobs and strengthen local supply chains.
The chamber also said the development of the critical minerals industry should maintain environmental, social and governance standards and protect host communities and Indigenous peoples.
The US International Trade Administration has identified the Philippines as a highly mineralized country with a potentially important role in global supply chains for clean energy, electric vehicles and semiconductors.
The Philippines has an estimated $170 billion in nickel deposits and about 4.8 million metric tons of nickel reserves. Most of the country’s nickel production is exported as raw ore.