President Ferdinand R. Marcos Jr. has signed into law Republic Act (R.A.) No. 12253, also known as the “Enhanced Fiscal Regime for Large-Scale Metallic Mining Act.” The signing ceremony was held at the Kalayaan Hall in the Malacañang Palace on September 4, 2025.

According to RH Leth Narciso, the new law aims to simplify and rationalize the tax system for large-scale metallic mining. It consolidates the provisions of House Bill No. 8937 and Senate Bill No. 2826, ensuring that the government receives a fair share of revenues while promoting transparency, accountability, and good governance in the mining industry.

Under R.A. 12253, mining operations will now be subject to:

• Royalty of up to 5% for minerals extracted within mineral reservations,

• Margin-based royalty of 1–5% for those outside reservations, and

• Windfall tax of up to 10% for highly profitable mining operations.

The government estimates that the law could generate more than ₱25 billion in additional revenue between 2026 and 2029, averaging ₱6.2 billion per year.

In his speech, President Marcos highlighted the importance of the law in ensuring fairness in mining revenues while protecting the environment and affected communities.

“Sa ilalim ng batas na ito magiging simple ang pamamalakad at paggamit sa pondo na mula sa mina. Matitiyak na may bahagi ang pamahalaan sa kita. Maitataguyod ang malinaw at tapat na sistema at maibibigay ang seguridad sa mga mamumunuhan. Higit sa lahat, layon natin na palakasin ang proteksyon ng kalikasan at mas makinabang ang mga komunidad na naapektuhan ng pagmimina,” he said.

He also stressed that the law closes loopholes that previously allowed mining contractors to conceal earnings.

“Gone are the days when a mining contractor can bury its profits beneath the weight of losses. No longer can we use one project’s failure to conceal another project’s success. Transparency is now the rule. Accountability [is] our standard and fairness the measure by which we move forward,” Marcos declared.

To ensure proper implementation, the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) will audit all mineral sales and exports and inspect company records in coordination with the Mines and Geosciences Bureau (MGB).

“With this law we send a very clear and powerful message: progress shall never come at the cost of our people nor our planet. Minerals are finite, once extracted they’re gone forever, but if we use them wisely, tax them fairly, protect our environment as we mine and ensure that revenue is returned to the people, then their value will outlive all of us,” the President said.