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Philex Mining Corporation (the “Company” or “Philex”) generated Php71 million core net income and an EBITDA of Php329 million for 1Q2025 compared with the Php105 million core net income and EBITDA of Php295 million for 1Q2024. Reported net income reached Php131 million in 1Q2025, 14% higher compared with Php115 million in 1Q2024. Operating revenues increased to Php1.896 billion in 1Q2025 versus Php1.738 billion in 1Q2024 due to continued improvement in the realized Gold and Copper prices. Average gold prices in 1Q2025 were higher at US$2,587 per ounce compared with the US$2,061 per ounce in 1Q2024. Copper for the first quarter was at US$4.32 per pound, higher than the US$4.00 per pound in 1Q2024. Operating costs increased to Php1.764 billion in 1Q2025 from Php1.643 billion in 1Q2024 which negatively affected the Company’s bottom line. Tonnage milled for 1Q2025 was at 1.602 million tonnes, higher than the 1.585 million tonnes in 1Q2024. Gold output for 1Q2025 was at 6,083 ounces versus the 7,803 ounces in 1Q2024. On the other hand, Copper output for 1Q2025 was at 4.595 million pounds compared with the 4.669 million pounds in 1Q2024. Operating an ageing Padcal Mine continues to pose challenges to the Company’s ability to operate efficiently in an environment of high metal prices and we rely heavily on the resiliency of our employees. The development works at the Silangan Project (“Silangan”) accelerated to a faster pace with the arrival of major long lead equipment packages despite challenging global supply chain environment. Silangan is scheduled to start commercial operations in the first quarter of 2026. “It is imperative that we usher Silangan into production based on schedule to initially augment the performance of the Padcal Mine while we are relentlessly pursuing other business opportunities,” according to Eulalio Austin Jr., Philex President and CEO. “Copper and gold prices are high, in the face of global trade and supply chain uncertainties, brought about by recent economic policy changes, and we take advantage of this to push forward the Silangan Project and the remaining Padcal potential.”

(Conclusion)  By Noel B. Lazaro, Eveart Grace P. Claro, Judd Yonder L. Reyes, and Marielle D. Marbella The global push for sustainability has reached a tipping point, compelling industries to accelerate their decarbonization efforts. Nowhere is this more critical than in mining—a sector paradoxically essential for the green transition yet burdened by its environmental footprint. The first part of this article (see Issue 4 2024 – Editor) examined the Philippine mining sector’s decarbonization landscape, highlighting the challenges of attracting carbon project investments, the role of policy reforms, and the industry's response to emerging sustainability standards like Towards Sustainable Mining (TSM). It also explored legislative efforts, such as the Low Carbon Economy Investment Act and the Carbon Rights Act, to incentivize emissions reduction and integrate carbon markets. This second part delves into the tangible steps mining companies must take to decarbonize, the barriers hindering progress, and the opportunities that could turn sustainability into a competitive advantage. Metrics for Mother Earth Sustainability reporting has become essential for businesses, particularly in mining. Since 2019, the Philippine SEC has mandated all listed companies to disclose their sustainability practices, achieving over 90% compliance. In 2023, the SEC reinforced this mandate with enhanced standards, including structured forms beyond narrative reporting to ensure thorough ESG disclosures. An encouraging development is the SEC's move towards mandatory reporting, aiming to extend these regulations to unlisted firms. Also, the Philippine Financial and Sustainability Reporting Standards Council (FSRSC) is introducing new reporting requirements for publicly listed extractive companies, mandating compliance with the International Financial Reporting Standards (IFRS) S1 and S2 by 2027. Developed by the IFRS Foundation's ISSB, these standards create a global framework for sustainability reporting, focusing on climate-related and financial issues that impact company value. IFRS S1 addresses general sustainability disclosures, while IFRS S2 targets climate-related disclosures, aiding companies in reporting how sustainability factors influence their long-term success and risk management. The introduction of IFRS S1 and S2 significantly boosts board accountability in industries with major environmental impacts, particularly in addressing sustainability and climate-related issues. These standards mandate oversight of sustainability practices, measurable emissions reduction targets, and stakeholder transparency, positioning boards as environmental stewards. Non-compliance can impair asset values, reduce earnings, and erode investor trust. With such standards, mining companies are set to establish trust among their stakeholders, thus attracting more investments with the promise of sustainability. Gospel of Circular Living The concept of a circular economy is fundamentally aligned with the principles of sustainability, focusing on reducing waste, maximizing resource efficiency, and promoting environmental regeneration. Unlike the traditional linear economy, which follows a "take-make-dispose" model, the circular economy emphasizes a closed-loop system where materials are reused, repaired, refurbished, and recycled to create a more sustainable, restorative system. Viewing mining through the lens of the papal encyclical Laudato Si reveals the tension between humanity's resource needs and the moral duty to protect the planet. At a Vatican meeting on “Mining for the Common Good,” Pope Francis voiced concerns about profit-driven economic models that overlook environmental and human impacts. He advocated for a "circular economy" in mining, emphasizing resource reuse and waste reduction. Circularity is essential in mining operations. Philippine mining companies must submit an annual environmental protection and enhancement program detailing measures to minimize extraction's adverse effects, including waste and tailings reduction, efficient water management, riverbank stabilization, progressive mine rehabilitation, and recycling of materials like tires and non-biodegradables. The DENR complements the shift to a circular economy and low-carbon energy system through the Green Economy Program of the Philippines (GEPP). This initiative emphasizes integrated waste management and green technology. The GEPP aims to involve all government levels and private sectors in policy formulation and energy efficiency promotion. Rohitesh Dhawan, CEO and President of the International Council on Mining and Metals (ICMM), describes how circularity can be made more impactful in an October 2024 report: “To achieve a circular economy at scale, innovative solutions are needed for both process and product.” Treasure in Transition The imperative to transition to a greener future embodies a paradox. The human activities driving carbon emissions are simultaneously vital for sustaining electrification, creating a delicate equilibrium between often opposing societal forces. Consider the Tesla Model 3 that has a 50-82 kWh lithium-ion battery, using 2170 Nickel-Cobalt-Aluminum (NCA) batteries before 2023, and 2710 Nickel-Cobalt-Magnesium (NCM) batteries in vehicles manufactured in China and Berlin. Recently, Tesla adopted Lithium-Iron-Phosphate (LFP) batteries for the standard Model 3 (2021-2023). This highlights a critical issue: EVs rely on batteries, which require minerals, and minerals necessitate mining. This theme is central to Ernest Scheyder’s recent book, “The War Below: Lithium, Copper, and the Global Battle to Power Our Lives,” which examines the conflicts arising from the demand for essential metals. Scheyder illustrates the complex interplay involving mining companies seeking to extract metals for value and revenue, residents opposing mine construction but seeking job security, environmentalists who acknowledge mining for the green revolution while striving to protect ecosystems, and regulators navigating both socio-economic interests and governance rules. Identifying barriers to decarbonization in mining is crucial, particularly economic dependence. This reliance can foster resistance to decarbonization due to fears of job losses and economic decline. Transitioning from fossil fuels requires substantial investment, limited financing options, and community support, posing political and social challenges. Infrastructure limitations complicate matters. Effective decarbonization demands modern infrastructure, including reliable energy sources and efficient transportation networks. In many regions, inadequate infrastructure hampers energy project implementation and cleaner technology adoption, leading to stalled initiatives or increased costs. Technical challenges also arise in scaling up new technologies, which often require trailblazing research and development. This technological gap hinders the adoption of practices that could reduce carbon footprints. According to the Rockefeller Foundation, the Philippines needs approximately $9 billion to bolster renewable energy efforts, a figure that could rise to $165 billion by 2050. The regulatory framework is another critical factor. Inconsistent or weak regulations and bureaucratic gridlock can lead to slow development. Absent fair and firm guidelines, companies may prioritize short-term profits over long-term environmental responsibility, thereby stalling progress in reducing carbon emissions. Global market pressures can also impact the mining sector’s decarbonization efforts. Fluctuating commodity prices may deter companies from investing in sustainability initiatives. Furthermore, supply chain emissions present another layer of complexity, as controlling emissions from suppliers and transportation can complicate overall decarbonization strategies. Awareness and education play a vital role in this context. A lack of understanding about the benefits and importance of decarbonization among stakeholders can hinder progress. Despite these challenges, there are opportunities conducive to decarbonization within the mining industry. Electrifying operations by transitioning to EVs and equipment can lower emissions, particularly when powered by renewable sources. BloombergNEF’s 2023 report noted that lithium-ion battery costs have dropped dramatically during the previous ten years, reaching a record low of $139/kWh last year, due to increased production capacity and falling raw material costs. By 2030, advancements like solid-state electrolytes and anodes are expected to lower costs to $80/kWh. The Philippines, rich in valuable metals like nickel, copper, and gold, has a combined value of $0.4 to $1 trillion. With adequate government support and a robust platform, it could position itself as an EV hub to rival Southeast Asia’s first battery plant in Indonesia. On the other hand, integrating renewable energy sources, such as solar, wind, and hydropower, can significantly reduce reliance on fossil fuels. For example, in 2018, Ipilan Nickel Corporation (INC) established a mini-hydro power plant with a 6-kW capacity to provide free electricity to the Indigenous community in Sitio Mararag, Barangay Maasin, Palawan. Since 2019, this facility has continuously supplied 220 volts to at least 32 households, including the Mararag Day Care Center. In 2022, the company also installed solar-powered lamp posts and plans to expand its solar initiatives, further supporting a cleaner environment. Moreover, INC has initiated a 25-hectare mangrove plantation in the brackish waters of Española, Palawan, contributing to coastal protection and environmental restoration. If replicated across regions and industries, these efforts could be pivotal. In compliance with DENR Administrative Order No. 2018-19, which sets strict limits on land disturbance and mandates immediate replanting or rehabilitation, mining companies are expected to implement comprehensive rehabilitation and reforestation efforts that not only restore biodiversity but also absorb CO₂. This can be strengthened by adopting circular economy practices that minimize waste. Carbon pricing is another avenue worth pursuing. By creating a market for carbon credits, companies can receive financial incentives to lower emissions, encouraging innovation and cost-effective carbon footprint reduction strategies. Governments are increasingly offering regulatory incentives to companies investing in green technologies, which could handsomely reduce costs—a strategy the Philippines should consider seriously. Finally, stakeholder pressure is rising, with investors and consumers demanding more sustainable practices and driving companies toward adopting decarbonization strategies. Balancing these opportunities and challenges will be crucial for the mining industry as it navigates the path toward effective decarbonization. Min(e)d Your Business A collaborative and multifaceted approach is required to overcome the barriers to a low-carbon future in the mining sector. Stakeholders can harness a culture of stewardship from initiatives like the DENR's green transition, clear and efficient regulatory policies, tax and financial incentives, international standards like the TSM model, meaningful sustainability disclosures, investment in renewable energy and carbon rights, upscaling circular economy practices, and access to research and technology. Achieving net-zero emissions by 2050 may seem like a piper’s dream, but with every ambition turned into action, decarbonization can come within reach. The world watches—with bated breath.     Atty. Noel B. Lazaro, Atty. Eveart Grace Pomarin-Claro, Judd Yonder L. Reyes, and Marielle Marbella are key members of the Legal and Regulatory Affairs Group at Global Ferronickel Holdings, Inc. (FNI). They were honored with the In-House Legal Team of the Year 2024 Best Practice Management Award (Corporate Social Responsibility) and were shortlisted for In-House Legal Team of the Year 2024 in the Energy and Natural Resources category by the In-House Community (IHC). The IHC represents over 21,000 in-house legal professionals across Asia and the Middle East and received a record 206 nominations in 2024 across 14 jurisdictions. They were also celebrated at the Asian Legal Business (ALB)–Philippine Law Awards 2024, organized by Thomson Reuters, where they received the In-House Team of the Year 2024 (Construction and Real Estate) award and were finalists in the Philippine In-House Team of the Year 2024 and In-House Team of the Year 2024 (Innovation) categories. Atty. Lazaro was named among the Top 5 Philippine In-House Lawyers of the Year 2024.