The mining industry has expressed its support for the easing of foreign ownership restrictions under the 1987 constitution to help attract foreign investments in mining.
According to a BusinessWorld report, Chamber of Mines of the Philippines (CoMP) Chairman Michael T. Toledo argued that both mining and the government’s emphasis on mineral processing demand significant capital and that there is a scarcity of Filipino investors possessing the financial and technical capacity to support the growth of these ventures.
Global Ferronickel Holdings, Inc. President Dante R. Bravo said altering the charter to permit more foreign equity could be instrumental in unleashing the Philippines’ mining potential. Bravo added that foreign investors can tap into funds from abroad and channel them into the country, a capacity that local miners currently lack.
The Department of Finance (DoF) has recently urged the House of Representatives to relax the foreign ownership restrictions outlined in the Constitution for mining, public utilities, education, mass media, and advertising.
Toledo asserted that amending the constitution to relax foreign ownership limits would enhance the competitiveness of the mining industry. He emphasized the importance of offering an attractive potential return on investment to both foreign and local investors, considering the substantial risks associated with mining ventures, and highlighted the need to compete with other mineral-rich nations for investments.
Former Finance Secretary Margarito B. Teves expressed his backing to the idea of easing foreign equity restrictions, suggesting that it could bring in new players and improve mining technology in the Philippines.
The Philippine Statistics Authority (PSA) reported a 22% increase in the value of the country’s metallic mineral reserves in 2022. Class A gold, copper, nickel, and chromite resources were valued at Php 491.19 billion.
