Critical Minerals Push: EO 122 Signals a Clearer Path for Responsible Mining & Downstream Value
President Marcos signed Executive Order No. 122 on 21 August 2026, establishing a unified national policy framework for the Philippines’ critical minerals industry. The order prioritizes exploration, development, and—most importantly—downstream processing of minerals essential for batteries, renewable energy technologies, electronics, and advanced manufacturing.
Key features include:
• DENR to issue a Philippine Critical Minerals List within 30 days
• Strict “use it or lose it” policy on mining tenements
• Virtual one-stop shop and simultaneous permitting (while retaining environmental and social safeguards)
• CREATE Act incentives for refining, battery production, and related industries
• Priority ore access for domestic processors
• Reorganized Mining Industry Coordinating Council (DENR–DOF co-chairs)
This aligns with 100% foreign ownership already allowed in renewable energy projects and the country’s participation in Pax Silica—the U.S.-led initiative to secure allied supply chains for critical minerals, semiconductors, and AI. German interest has already been publicly noted, citing the improved regulatory certainty for long-term processing investments.
How does this sit with existing mining rules and past bans?
The Philippines still operates under the Philippine Mining Act (RA 7942) and constitutional limits on mineral agreements (generally 60% Filipino ownership, with FTAAs available for large-scale projects). Earlier open-pit mining restrictions and the long moratorium on new mineral agreements constrained the sector for years. Those national barriers have since been lifted, but strong local restrictions remain (e.g., Palawan’s long-term ban on new mining and temporary provincial measures elsewhere). EO 122 does not create a free-for-all. It explicitly retains environmental, social, and community safeguards and emphasizes responsible, value-adding development over pure extraction.
For clients and investors, the practical takeaway is clearer: the policy direction favors projects that move beyond raw ore exports toward domestic processing, battery materials, and RE-linked supply chains—while still requiring rigorous compliance with permitting, rehabilitation, and ESG standards.
At CGRLAW, we are tracking the forthcoming Critical Minerals List, implementing rules on the one-stop shop, and the interplay with existing DENR/MGB requirements. Happy to discuss structuring, foreign investment pathways, or compliance implications for your project.
What are your thoughts on how this shifts the investment landscape?
CGRLAW & Associates
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