THE Chamber of Mines of the Philippines and the Philippine Nickel Industry Association on Thursday cautioned that an administrative order governing natural resource contracts could create regulatory uncertainty and increase investment risks.
In a statement, the two groups raised concerns over provisions of Joint Administrative Order 2026-01 issued by the Department of Energy (DOE), and the Department of Environment and Natural Resources (DENR).
The order sets the framework for awarding service and operating contracts for natural resources.
The groups said the order includes provisions requiring existing operators to turn over operational assets when their contracts expire, even if these are privately owned. They also questioned bidding rules that account for closure liabilities and asset costs, saying these could disadvantage current operators.
They added that the evaluation criteria give insufficient weight to proven technical capability, operational experience and environmental performance.
“Policy stability and adherence to the rule of law are the bedrock for business and investment growth,” the groups said.
They warned that uncertainty over project financing and asset valuations could raise investment costs, undermining government efforts to attract investors and President Ferdinand Marcos Jr.’s push to make mining a stronger pillar of economic development.
The potential impact extends beyond mining, the groups said, as the Philippines is drawing strong foreign investor interest, particularly in the Pax Silica initiative.
“The country must not let this golden opportunity pass for questionable and even illusory gains,” they said.
The groups urged the government to ensure that the order complies with existing laws and contractual rights, promotes fair and transparent competition, and supports long-term investment.
“We remain committed to constructive engagement with the DOE and the DENR to help achieve the government’s policy objectives,” they said.
