Executive Order No. 122, signed by President Ferdinand Marcos Jr. on Aug. 21, lays the groundwork for developing industries around the country's mineral resources, including refining, advanced materials processing, battery production, electronics and renewable energy technologies.
The Department of Finance (DOF), in a statement, said the order establishes a national policy framework for the responsible development of the mining and critical minerals sector, with the goal of using the country's mineral wealth to support economic growth and industrialization.
Moving downstream
Finance Secretary Frederick Go said EO 122 could help the Philippines capture a larger share of the economic value generated by its mineral resources instead of primarily exporting them in raw form.
“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,” Go said.
At the center of the policy is the development of a competitive domestic critical minerals value chain.
The Department of Trade and Industry-Board of Investments, in coordination with the Department of Environment and Natural Resources (DENR), was directed to promote investments in critical mineral refining, advanced materials processing and manufacturing.
Target downstream industries include batteries, electronic components, renewable energy technologies and other products that use critical minerals.
Supporting industries
EO 122 also calls for the development of supporting industries covering energy, water supply, transportation and logistics, as well as mineral recovery and recycling.
The order directs authorities to strictly implement the government's “Use It or Lose It” policy for critical mineral mining tenements and accelerate the disposition and privatization of government-owned critical mineral mining assets through the Privatization and Management Office.
It also strengthens inter-agency coordination by naming the finance and environment secretaries as co-chairs of the Mining Industry Coordinating Council.
Go said the council would work to align government policies toward responsible mineral development while encouraging investments and greater domestic value creation.
Global demand
The policy comes as demand for critical minerals rises alongside the expansion of electric vehicles, renewable energy, electronics, digital technologies and advanced manufacturing.
The DOF said the Philippines, one of the world's major nickel producers and home to significant deposits of copper, cobalt and other minerals, is positioned to capture a bigger share of these global value chains.
The government expects EO 122 to support investments and job creation while helping develop a domestic minerals industry that contributes more broadly to Philippine industrialization and long-term economic growth. — Ed: Corrie S. Narisma
