The Philippines is shifting its economic strategy from raw mineral extraction to local processing and downstream manufacturing under Executive Order 122, signed by President Ferdinand Marcos Jr. on Aug. 21, according to the Department of Finance. The new national policy framework targets investments in critical mineral refining, advanced materials processing, and the production of batteries, electronic components, and renewable energy technologies to generate greater value for the national economy.
Executive Order 122 Framework and Institutional Roles
The newly established framework directs the Department of Trade and Industry-Board of Investments, alongside the Department of Environment and Natural Resources, to actively promote investments in refining and advanced materials processing. According to the Department of Finance, the policy also extends to supporting industries such as energy, water supply, transport and logistics, mineral recovery, and recycling. President Marcos Jr.’s directive responds directly to rising global demand for minerals utilized in electric vehicles, digital technologies, and advanced manufacturing, sectors where the Philippines is a major nickel producer and has deposits of copper and cobalt.
To streamline governance, Executive Order 122 designates the secretaries of Finance and the Department of Environment and Natural Resources as co-chairpersons of the Mining Industry Coordinating Council. This change strengthens its role in coordinating government policies and addressing barriers to investment. Furthermore, the order enforces the strict implementation of the “Use It or Lose It” policy for critical mineral mining tenements while accelerating the disposition and privatization of government-owned mining assets.
Industry Response and Strategic Priorities
The Philippine Nickel Industry Association welcomed the policy as a pivotal step toward strengthening the country’s position in the global critical minerals market. The group noted that elevating critical mineral initiatives to national priority status acknowledges these assets as vital drivers for industrial advancement, infrastructure growth, power security, digital evolution, and the shift toward clean energy. The group also praised provisions calling for digitalized permitting and predictable regulatory processes.
“For investors, strong policy direction builds confidence, but consistent implementation sustains it,” the Philippine Nickel Industry Association stated, emphasizing that the government must translate the policy into faster and clearer processes. The sector’s representatives added that they remain committed to partnering with state authorities, local government units, and local populations to pursue responsible mineral extraction that upholds stringent ecological and social benchmarks.
Did You Know? President Ferdinand Marcos Jr. signed Executive Order 122 on Aug. 21, establishing a national policy framework for the responsible development of the mining and critical minerals sector.
Frequently Asked Questions
What does Executive Order 122 aim to achieve?
Signed by President Ferdinand Marcos Jr. on Aug. 21, the order establishes a national policy framework for the responsible development of the mining and critical minerals sector. It aims to move the Philippines beyond raw extraction by developing local refining, advanced materials processing, and downstream manufacturing for batteries and renewable energy technologies.
Which government bodies are tasked with implementing the new policy?
Investment promotion for refining and downstream manufacturing is spearheaded by the Board of Investments under the Department of Trade and Industry, working jointly with the Department of Environment and Natural Resources. Additionally, the secretaries of Finance and the Department of Environment and Natural Resources serve as co-chairpersons of the Mining Industry Coordinating Council to address investment barriers.
How has the mining sector reacted to the framework?
The Philippine Nickel Industry Association welcomed the policy as a pivotal step that strengthens the country’s standing in the global market. The group praised the designation of critical mineral projects as national priority projects and commended the focus on streamlined permitting and stronger interagency coordination.
How do you think local communities will be impacted by the push toward downstream critical mineral processing and manufacturing?
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