Finance Secretary Ralph Recto said on Thursday after President Ferdinand Marcos Jr. signed the new mining law the government will continue to engage with all stakeholders to ensure the law “delivers on its promise.”
The government has pledged a swift and transparent rollout of a new tax law for large-scale metallic mining that is expected to generate an additional P6.26 billion in annual revenue for the government.
The Enhanced Fiscal Regime for Large-Scale Metallic Mining Act (RA12253), signed into law on Sept. 4, 2025, overhauls the current tax system to ensure the government gets a fair share from the sector.
The new regime simplifies the tax structure by eliminating complex distinctions between different mining agreements and applying a unified system to all large-scale metallic operations.
A key feature of the law is the introduction of new taxes, including a five-tiered royalty rate for mines outside mineral reservations and a five-tiered windfall profits tax.
These measures are designed to particularly benefit local government units, which are entitled to a share of the national wealth.
The law also includes safeguards like a 2:1 debt-to-equity ratio and a “ring-fencing rule” that prevents companies from offsetting losses from one project against profits from another.
To promote transparency, the law mandates the public disclosure of data and establishes a multi-stakeholder mechanism for participatory governance.
It also earmarks funds for research and enforcement, with 10 percent of royalties from mines within mineral reservations to be invested in mineral exploration and research, and used to equip the Bureau of Internal Revenue with specialized tools for proper oversight.
