The Department of Finance (DOF) is backing the new national mining framework under Executive Order No. 122 that seeks to move the Philippines beyond raw mineral extraction and exports toward processing, manufacturing, and other higher-value industries.
The executive order, signed by President Ferdinand R. Marcos Jr. on Aug. 21, establishes a national policy framework for the responsible development of the country’s mining and critical minerals sector, with a focus on value-added processing, downstream industries, investment, competitiveness, and sustainable mining practices.
At the center of the framework is the development of a competitive domestic critical minerals value chain, with the government aiming to retain more of the economic value generated from Philippine mineral resources.
“EO 122 gives us a clear framework to develop our critical minerals industry, while strengthening the conditions for responsible investment. Our goal is to build industries around our mineral resources—processing, manufacturing, and other value-adding activities that create jobs, attract investments, and generate greater value for the Philippine economy,” Finance Secretary Frederick D. Go said.
Under the order, the Department of Trade and Industry-Board of Investments, in coordination with the Department of Environment and Natural Resources (DENR), is tasked with promoting investments in critical mineral refining, advanced materials processing, battery manufacturing, electronic components, renewable energy technologies, and other downstream products.
The framework also extends to side-stream industries needed to support mining and processing, including energy, water supply, transport and logistics, as well as critical mineral recovery and recycling.
EO 122 also calls for the proper and sustainable development of critical mineral resources, including strict implementation of the government’s “Use It or Lose It” policy for critical minerals mining tenements.
It also directs the accelerated disposition and privatization of government-owned critical mineral mining assets through the Privatization and Management Office.
The order strengthens inter-agency coordination by designating the Finance Secretary and Environment Secretary as co-chairpersons of the Mining Industry Coordinating Council (MICC), which will help align government policies and programs for the responsible and strategic development of the sector.
“As co-chair of the MICC and head of the Economic Development Committee, we will work with our partners to ensure that our policies support the responsible development of the critical minerals industry, while encouraging more investments and greater value creation for the Philippine economy,” Go said.
The DOF said the framework comes as global demand for critical minerals continues to rise alongside the expansion of electric vehicles, renewable energy, electronics, digital technologies, and advanced manufacturing.
The Philippines is one of the world’s major nickel producers and also holds significant deposits of copper, cobalt, and other critical minerals, positioning the country to potentially capture a larger share of emerging global value chains.
The policy direction signals an effort to make mining a larger part of the country’s industrial strategy, rather than treating mineral extraction as an end in itself.
If the government can translate the framework into actual investment in refining, advanced materials, batteries, renewable energy technologies, and manufacturing, the Philippines could retain more value from the minerals it already produces.
Can EO 122 help turn the country from primarily a mineral supplier into a larger player in critical minerals processing and advanced manufacturing?
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