DMCI weighs court challenge to resource contract rules
DMCI Holdings Inc. may challenge new government rules on natural resource contracts in court if these adversely affect its businesses, Chairman Isidro Consunji said, citing an apparent conflict between the joint administrative order and existing laws.
The Department of Energy and the Department of Environment and Natural Resources issued Joint Administrative Order No. 2026-01, updating procedures for evaluating and awarding contracts and rights covering ores, minerals and coal.
“I don’t think the JAO should supersede existing laws. So, there’s an apparent contradiction between the JAO and existing laws but we’ll resolve that first. We’ll resolve the apparent contradiction before implementing it,” Consunji told reporters on the sidelines of the 2026 International Mining Conference and Exhibition in Pasay City on Tuesday.
“It’ll probably be challenged in court, I guess. Most probably, some companies will challenge it,” he added.
DMCI companies that may be affected include Semirara Mining and Power Corp. and DMCI Mining Corp.
Semirara is participating in the government’s auction of predetermined coal resource areas, including the area it operates on Semirara Island in Antique. Its existing contract expires on July 14, 2027.
“If it affects us adversely, we’ll probably have to challenge it,” Consunji said.
ASSET TURNOVER
Mining stakeholders have objected to provisions they say would require incumbent operators to turn over privately owned operational assets to the government when their contracts expire.
They have also argued that the bidding rules could disadvantage existing operators by factoring in closure liabilities and asset costs, while giving insufficient weight to technical expertise, operating records and environmental performance.
Earlier this month, mining groups warned that uncertainty over the rules could also affect the Philippines’ efforts to attract foreign direct investment.
At the same conference, Chamber of Mines of the Philippines Chairman Michael Toledo reiterated the industry’s call for predictable rules to protect investment, while acknowledging its environmental and social responsibilities.
“The demand for minerals is unquestionable. Minerals are needed for electrification, technology, infrastructure, and the transition to cleaner energy. But extracting them has consequences. Water systems, biodiversity, local communities, and Indigenous Peoples must all be part of the equation,” Toledo said.
“We cannot responsibly mine without limits. But neither is it realistic to imagine a world that can meet its development needs without mining,” he added.
The chamber said mining must operate under clear rules, effective safeguards and genuine regard for communities hosting projects.
DOMESTIC PROCESSING
The DENR, meanwhile, outlined opportunities for the Philippines to expand domestic mineral processing and become a bigger participant in global critical mineral supply chains.
DENR Assistant Secretary for Mining Concerns Michael Cabalda said rising demand for these resources was accompanied by concerns over supply vulnerability.
“As the demand for these resources increases, the need to address the supply vulnerability has also become a global concern. Production, processing, and refining are concentrated in very few jurisdictions, making trade restrictions and supply shocks a constant risk,” Cabalda said.
He said the world was seeking diversified, reliable and responsible suppliers, with the Philippines recognized as a potential key participant.
Cabalda said the country must use its mineral resources and policies to support a shift from raw mineral exports toward domestic processing, value addition, industrialization and participation in global green energy and technology supply chains.
He said the government’s approach also calls for strict environmental, social and cultural standards and a commitment to policy stability.
Source: Malaya Business Insight