President Ferdinand “Bongbong” Marcos Jr. on Thursday signed into law the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act or Republic Act 12253, a measure that aims to streamline taxation in the mining industry while ensuring greater benefits for the government, local communities, and the environment.
Speaking at the ceremonial signing in Malacañang’s Kalayaan Hall, Mr. Marcos said the new law establishes “a system that is fairer, clearer, and more responsive to the needs of both our people and the environment.”
Under the measure, mining firms operating within government-designated mineral reservations will be required to pay a 5% royalty on their gross output.
Companies outside these reservations will instead face a margin-based royalty, while those earning profit margins above 30% will be subject to additional taxes.
“Gone are the days when a mining contractor can bury its profits beneath the weight of losses,” the chief executive said.
“Transparency is now the rule, accountability our standard, and fairness the measure by which we move forward,” he added.
The law also ensures that local government units will receive 40% of gross collections from excise taxes, royalties, and other fees from mining operations.
Meanwhile, 10% of royalties collected from designated sites will go to the Mines and Geosciences Bureau and the Metals Industry Research and Development Center to fund research, exploration, and environmental protection initiatives.
Mr. Marcos emphasized that the reforms are designed not only to boost government revenues but also to safeguard ecological balance and uplift mining-affected communities.
“This law sends a very clear and powerful message: Progress shall never come at the cost of our people, nor our planet,” he said.
The President credited Congress and industry stakeholders for their role in advancing the measure, which he said would pave the way for the growth of downstream industries and the local manufacturing of essential products for the green economy.
“Minerals are finite. Once extracted, they are gone forever,” Mr. Marcos said.
“But if we use them wisely, tax them fairly, protect our environment as we mine, and ensure that revenues return to the people, then their value will outlive all of us,” he added.
