Marcos Jr. urges senate to pass bill imposing royalties and windfall tax on mining

The Department of Environment and Natural Resources (DENR) says that the government aims to incentivize firms involved in processing crucial minerals essential for the country’s green transition.

In a report by Business World, President Ferdinand R. Marcos Jr. has called on the Senate to approve a bill that seeks to impose margin-based royalties and a windfall profit tax on mining companies, more than a year after the House of Representatives passed it.

Additionally, Environment Secretary Maria Antonia Yulo-Loyzaga stated that the Department of Trade and Industry (DTI) is focused on encouraging processing, which is vital for the Philippines to participate in the electric vehicle (EV) market.

She noted that her agency is collaborating with the DTI and other departments to explore the mineral industry’s potential in line with the goal of manufacturing EVs and other green technologies.

For the EV initiative, Loyzaga said that the department must determine what materials we require and what we have available for domestic use. She stressed that the DENR is working alongside the DTI to promote investments in mineral processing.

She indicated that potential incentives could focus on processing nickel, essential for clean energy technologies, and copper, crucial for producing EV batteries, though she did not specify the types of incentives.

Ms. Loyzaga explained that assessing the country’s energy transition requirements and infrastructure development needs is vital to determining which minerals are deemed critical.

The Chamber of Mines of the Philippines expressed support for the incentive initiative but emphasized the need to address fundamental issues affecting the industry before pursuing value-added mineral processing.