President Ferdinand R. Marcos Jr. signed into law on September 4 Republic Act (RA) 12253, or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, a landmark measure designed to give the government and communities a bigger and fairer share of mining revenues.
In a ceremony at Malacañan Palace, the President described the new fiscal framework as a “clearer, fairer, and more responsive” system that balances the needs of people, industry, and the environment.
“Around the world, the demand for minerals is surging. These minerals are the building blocks of a green and digital economy—needed for batteries, solar panels, and other vital components of clean energy,” Marcos said. “We are blessed because the Philippines is rich in such resources.”
The new law simplifies and rationalizes the fiscal regime for large-scale metallic mining, introducing a five-tier margin-based royalty ranging from 1 percent to 5 percent on income from mining operations outside mineral reservations, with a minimum 0.1 percent royalty for low-margin mines. It also establishes a five-tier windfall profits tax of 1 percent to 10 percent, along with new limits on debt deductions and a “ring-fencing” rule to prevent firms from offsetting losses across different projects.
Finance officials project that RA 12253 could generate an additional ₱25.08 billion in revenues between 2026 and 2029, or an average of ₱6.26 billion annually.
The law retains existing levies such as the 25 percent corporate income tax, 4 percent excise tax, 5 percent royalty for mines inside mineral reservations, and the minimum 1 percent royalty for indigenous peoples. It also introduces transparency measures, including monitoring of mineral sales, public disclosure of mining data, and the creation of a multi-stakeholder accountability group.
Industry leaders welcomed the long-awaited reform.
“We welcome the passage of this tax measure as it brings clarity to the government’s revenue share and will encourage more investments in mining and value-added processing,” said Dante Bravo, president of Global Ferronickel Holdings Inc.
The Chamber of Mines of the Philippines (COMP) called the law a “crucial step” toward a stable, transparent, and competitive fiscal environment.
“Increased taxation is inevitable. What this law provides is predictability and consistency, which are essential for long-term planning,” COMP said in a statement. “This policy milestone comes at a pivotal moment as the Philippines seeks to position itself as a reliable source of essential minerals for the global energy transition.”
Beyond revenues, RA 12253 also earmarks 10 percent of royalties from mines inside mineral reservations to fund mineral valuation laboratories, exploration, and new tools for tax monitoring. It streamlines the disbursement of local government shares from mining taxes, a process that has often been delayed.
Marcos said the measure strengthens not just the fiscal system but also the country’s bid to harness its mineral wealth responsibly.
“This is another step toward building a more resilient and inclusive Bagong Pilipinas,” the President said.
