The Department of Finance (DOF) has assured the public that the newly signed Republic Act No. 12253, or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, will strengthen environmental safeguards while optimizing the country’s mineral wealth for inclusive and sustainable development.
Finance Secretary Ralph G. Recto said the law is not only pro-investment but also pro-environment, pro-people, and pro-Filipino as it ensures that mining activities contribute fairly to national development without compromising ecological integrity.
“The law guarantees that the environment will be protected and that revenues from mineral resources will be channeled back to the people through quality jobs, improved communities, and better public services,” Recto said following the ceremonial signing on Thursday, 4 September.
Signed by President Ferdinand R. Marcos Jr., the law introduces a simplified and unified tax regime for large-scale metallic mining operations, eliminating complicated distinctions between mining contracts. It imposes royalty and windfall profits tax even on mines outside mineral reservations and ensures strict environmental, financial, and transparency measures.
“This law sends a powerful message: progress must never come at the expense of our people or our planet,” President Marcos noted, underlining the finite nature of mineral resources.
To further strengthen environmental governance, RA 12253 mandates:
- Strict monitoring and audit of mineral sales and exports
- Public disclosure and multi-stakeholder participation aligned with global transparency standards
- Ring-fencing of mining projects to prevent tax base erosion
- Debt-to-equity safeguards to regulate related-party financing
- Allocation of 10 percent of royalties from reserved areas for mineral research and laboratory infrastructure
The law is projected to raise P6.26 billion in average annual incremental revenue from existing mines while boosting LGU income shares and investor confidence.
“The DOF is fully committed to implementing the law transparently and inclusively. We will continue engaging stakeholders to ensure that environmental and social commitments are upheld,” Recto said.
