DENR says EO 122 can help Mindanao mining shift from raw ore to processing

Mindanao's mining sector can go beyond exporting raw ore and move into domestic smelting, refining and the manufacture of high-value components and batteries, an official of the Department of Environment and Natural Resources (DENR) said, according to Mindanao Times.

DENR Undersecretary Joselin Marcus E. Fragada made the case on Oct. 28 during the second plenary day of the Mindanao Development Forum 2026 at the Dusit Thani Davao in Davao City. He cited Executive Order No. 122, which he said makes critical mineral processing a national priority, as the policy basis for the shift. The designation carries contract sanctity, regulatory consistency and incentive packages from the Department of Trade and Industry-Board of Investments.

"For the longest time, Mindanao has had the largest share of mining activities," Fragada said. According to the report, more than half of the mineral production sharing agreements are in Mindanao, concentrated in the Davao Region and Caraga.

Fragada said the Caraga laterite basin, a source of nickel, cobalt and scandium, could expand from raw ore exports into high-pressure acid leach processing, with the eventual aim of producing precursor cathode active materials for electric vehicle batteries. For copper and molybdenum, the target is domestic smelting, refined copper rod and clean grid infrastructure. He reported that Philippine copper output in 2025 reached 231,885 dry metric tons, valued at P26.63 billion.

The DENR identified four structural bottlenecks in Mindanao along with proposed responses. These include unlocking 132,895 hectares of forest land for solar and wind projects to power mineral zones, and using blended finance, official development assistance and public-private partnerships to build dedicated mineral transport corridors.

Fragada also said the Mining Industry Coordinating Council will enforce environmental, social and governance standards, ensure compliance with free, prior and informed consent, and require that wealth from mining fund local Sustainable Development Goal programs. He added that the government should use bilateral agreements under EO 122 to attract foreign investment and technology transfer.

The department listed EO 122 cooperation with five countries: the United States on domestic processing and supply chains, Japan on mine rehabilitation and environmental monitoring, South Korea on deep exploration and clean processing, the United Kingdom on ESG standards and a Responsible Nickel Roadmap, and Canada on AI-driven mineral mapping, tailings storage and digital mining governance.