Mining Company Ipilan Responds to Senate Hearing: Explains Its Permits and Community Contributions

Mining Company Ipilan Responds to Senate Hearing: Explains Its Permits and Community Contributions

Ipilan Nickel Corporation, a mining company operating in Brooke’s Point, Palawan, has released a statement explaining its side after a Senate hearing on March 9, 2026. The company is part of Global Ferronickel Holdings, Inc. (PSE: FNI), which is the Philippines’ second largest nickel ore producer.

What Happened at the Senate Hearing?

During the Senate hearing, Vice Mayor Mary Jean D. Feliciano of Brooke’s Point, Palawan made some statements about the company. Ipilan says these statements were not accurate and wanted to set the record straight about whether they have the proper permits to operate.

Does Ipilan Have Permission to Mine?

According to the company’s statement, yes. Here are the permits they say they have:

  • Mineral Production Sharing Agreement (MPSA): The Department of Environment and Natural Resources (DENR) renewed this permit, allowing Ipilan to operate until 2043
  • Environmental Compliance Certificate (ECC): The company says this certificate is still valid. In June 2020, DENR issued an order confirming the ECC was not cancelled
  • Certification from Indigenous Peoples: The National Commission on Indigenous Peoples (NCIP) gave approval after conducting a Free, Prior, and Informed Consent (FPIC) process with indigenous communities

What About Environmental Concerns?

The company addressed several issues that were brought up during the hearing:

Flooding in 2023: An investigation by the Mines and Geosciences Bureau (MGB) found that the flooding was caused by unusual rainfall and soil saturation, not by mining activities.

Water pollution claims: Ipilan says allegations about pollution affecting water sources, irrigation systems, and farmlands have no scientific evidence to support them.

Tree-cutting allegations: Courts dismissed complaints about this, confirming that any tree-cutting was done with valid permits.

How Much Taxes Does Ipilan Pay?

Since starting commercial operations in 2022, Ipilan has paid significant amounts in taxes:

  • National Government: ₱1.73 billion in income taxes, excise taxes, and other charges over more than three years
  • Local Government: ₱322.1 million total, with ₱299.4 million going directly to Brooke’s Point Municipality
  • This includes ₱130.75 million in local business taxes and ₱168.65 million in ecosystem and municipal fees
  • The company says it is the municipality’s top taxpayer

The Mayor’s Permit Issue

Even though Ipilan has paid all these taxes and fees, the local government has not given them a Mayor’s Permit. The company says the local officials accepted their payments but withheld the permit. Ipilan has taken this matter to court and argues that under the Philippine Mining Act, they don’t need a Mayor’s Permit to continue mining operations. They also mention they have a valid Mayor’s Permit from their head office in Parañaque City.

What About the Local Community?

According to Ipilan’s statement, the company has strong community support:

  • Social acceptability rating: 87%
  • Employment: 1,149 workers, including 274 members of indigenous communities
  • Indigenous peoples’ royalties: ₱80,835,343.29 paid
  • Community programs: ₱101 million allocated for Social Development and Management Programs covering livelihood, education, and infrastructure

About Global Ferronickel Holdings, Inc.

Global Ferronickel Holdings, Inc. (PSE: FNI) is the parent company of Ipilan Nickel Corporation. Its main subsidiary is Platinum Group Metals Corporation, which operates mining sites in Claver, Surigao del Norte and Brooke’s Point, Palawan. The company is also expanding into other businesses like nickel processing, cement manufacturing, and port operations.

The company emphasized its commitment to responsible mining, transparency, and following all regulatory requirements while working with government agencies, local communities, and the public.

Source Note:

This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.

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