Mining in the Philippines
Foreign and local mining companies doing business in the Philippines must obtain the necessary permits for establishing operations in the country. Our lawyers are familiar with Philippine mining law and provides a large number of quality services for mining companies in the Philippines, including legal representation and support, business registration, company transaction and risk management assistance. Carpo Law’s dynamic team of highly-qualified lawyers possess in-depth knowledge of the Philippine mining industry, and will assist your company in the different aspects of your mining enterprise.
Our firm offers numerous legal work to foreign and local mining companies in the country, including:
- Legal advice
- Legal representation and support
- Review of mining permits and contracts
- Business registration assistance
- Company transaction assistance
- Risk management assistance
Foreign-owned Mining Companies in the Philippines
According to the general terms and conditions provided by Philippine law, the State is permitted to enter into either technical or financial assistance agreements with foreign-owned corporations for large scale mining exploration, the development, and utilization of minerals, petroleum, and other mineral oils. The terms and conditions of the above mentioned financial or technical assistance agreements are contained in the Philippine Mining Act. Under this law, only the following “qualified persons” may engage in the exploration, utilization, and development of mineral resources in the Philippines:
- Any citizen of the Philippines with capacity to contract,
- Corporations, Partnerships, Associations, or Cooperatives organized or authorized for the purpose of engaging in mining, with technical and financial capability to undertake mineral resources development and duly registered in accordance with the law at least sixty per centum (60%) of the capital of which is owned by citizens of the Philippines
A legally organized foreign-owned corporation may be deemed a qualified person for purposes of granting an exploration permit, financial or technical assistance agreement, or mineral processing permit. A financial or technical assistance agreement is a contract that offers either financial or technical assistance for large-scale exploration, development, and utilization of mineral resources in the Philippines. However, foreign ownership is restricted for enterprises that undertake activities listed in the Foreign Investment Negative List (FINL). Large-scale mining is restricted to companies with 100% Filipino ownership. If the mining activity is conducted under a Small-Scale Mining Permit (SSMP), which usually covers 20 hectares of mining area, a company with at least 60% Filipino ownership can engage in large-scale mining. A 100% foreign-owned mining company can only engage in exploration and mineral processing activities, but it may attempt large-scale mining activities under a financial and technical assistance agreement with the Philippine government.