Tag Archives: foreign investments

Philippine Mining: The Grandfather Rule for Foreign Investments

If you are a foreign investor thinking of putting in capital for mining businesses in the Philippines, you must have asked if there is a limit on foreign ownership for Philippine mining companies. The Supreme Court again discussed this issue in a recent ruling denying a motion for reconsideration filed by certain mining companies in the Philippines. The controversy is anchored on the requirement that mining, among other activities, is reserved by the Constitution — the highest law of the land — for Filipinos. Sec. 2, Art. XII of the Constitution, which provides that the exploration, development, and utilization of of natural resources is reserved to Filipinos, whether natural persons or juridical persons. Filipino juridical persons refer to “corporations or associations at least sixty per centrum of whose capital is owned by such citizens.” Continue reading

A Less Negative Foreign Investment Negative List

[The Joint Foreign Chambers of the Philippines, by way of reaction to the Ninth Foreign Investment Negative List issued through Executive Order No. 98, issued an official statement, full text of which is reproduced below. The negative list contains the activities restricted to Filipinos, in various percentages of ownership.] Continue reading