Local mining leaders are preparing to take legal action against Joint Administrative Order (JAO) No. 2026-01, recently issued by the Department of Energy (DOE) and the Department of Environment and Natural Resources (DENR). Sector executives warn that the new framework directly conflicts with established Philippine laws, introducing severe regulatory uncertainty and heightened risks for investors across the country.
The primary friction point centers on statutory precedence and private property rights. DMCI Holdings Inc. Chairman Isidro Consunji highlighted an apparent legal contradiction, emphasizing that an administrative order cannot legally supersede existing statutes and that companies will likely challenge the policy in court.
Industry stakeholders have raised strong objections to provisions requiring current operators to turn over operational assets upon contract expiration, even though those assets remain private property under the law. Mining groups also flagged bidding rules that disadvantage existing operators by factoring in closure liabilities and asset costs, along with evaluation criteria that penalize proven technical expertise, past operational track records, and environmental performance.
Il
The regulatory shift directly impacts major domestic resource developers, including DMCI Holdings subsidiaries Semirara Mining and Power Corp. (SMPC) and DMCI Mining Corp.
SMPC is participating in the government’s auction of pre-determined coal resource areas, including its asset on Semirara Island in Antique, which represents the largest coal-producing contract in the Philippines. With SMPC’s operating contract set to expire on July 14, 2027, the company is participating in the DOE’s bidding process to extend its term, and Consunji confirmed that affected entities will likely pursue legal remedies if the order impacts them adversely.
Industry representatives warn that the uncertainty generated by JAO No. 2026-01 extends beyond the mining sector, creating broader policy unpredictability that could hinder the Philippines’ ability to attract foreign direct investment.
At the 2026 International Mining Conference and Exhibition in Pasay City, Chamber of Mines of the Philippines (COMP) Chairman Michael Toledo called for predictable rules to protect investment while ensuring responsible mineral production. Toledo emphasized that while critical minerals are essential for electrification, technology, infrastructure, and the clean energy transition, resource extraction must be balanced with transparent governance and strong protections for biodiversity, local water systems, and Indigenous Peoples.
