Philippines Mining Income (Royalties): Quantifying the Amount and Identifying the Beneficiaries

In 2023, the Philippines saw a significant increase in revenue from the mining sector, with a total value of taxes, fees, and royalties reaching approximately ₱44.84 billion. This marked a notable growth from previous years, although the peak earnings for the country's mineral wealth were reportedly achieved in 2022, with exact figures yet to be specified.

The surge in revenues can be attributed to the implementation of Republic Act No. 12253, also known as the "Enhanced Fiscal Regime for the Mining Industry Act", which was signed into law on September 4, 2025. This law aims to establish a fair, transparent, and accountable system that ensures the government receives a just share of mining revenues while encouraging responsible mining activities.

One of the key changes introduced by RA 12253 is the creation of a modernized fiscal framework for large-scale metallic mining operations in the Philippines. The law mandates a 5% royalty on gross output for designated mining sites, as well as tiered royalties and windfall profit taxes. It also ends the practice of offsetting losses against profits across projects and limits tax benefits from related-party borrowing.

Moreover, the law mandates strict auditing and inspection of mining sales and exports by multiple government agencies to plug the decades-old leak in the royalty and excise tax system. This increased scrutiny is intended to ensure that the collected revenues are accurately accounted for and that the funds are used effectively.

Part of the collected revenues will be allocated for research, exploration, and sustainable mining practices. The law also encourages responsible mining investments that respect the rights of Filipinos and the environment. In fact, 40% of excise tax collections, royalties, and related taxes will go directly to local government units, further promoting local development and community involvement.

Looking back, in 2017, the government collected ₱1.1 billion in royalties and ₱1.9 billion in excise taxes from mining operations. However, there is no publicly available information specifying when the Philippine government agencies will publish the collected mineral taxes and royalties from 2005 to 2025 in a consolidated table.

It's worth noting that only 2.6% (779,446.41 hectares) of the 9 million hectares identified mining areas in the Philippines have mining tenements. A mining tenement is a legal right granted by law to a company or individual to explore for, extract, and use mineral resources from a specific area of land.

In conclusion, the Enhanced Fiscal Regime for the Mining Industry Act of 2025 has brought about significant changes in the mining sector of the Philippines. By promoting transparency, accountability, and responsible mining practices, the law aims to ensure that the country benefits fully from its mineral resources while protecting the environment and the rights of its people.

Philippines Mining Income (Royalties): Quantifying the Amount and Identifying the Beneficiaries