The Federal Ministry of Solid Minerals Development has given its fact-finding committee a seven-day ultimatum to evaluate the impact of gold mining site operations on Osun State communities.
The Minister of Solid Minerals Development, Dr. Dele Alake, disclosed this on Wednesday, October 9, 2024, via his X page.
This comes just four days after the minister cautioned the Osun State Government against jeopardizing the Federal Government’s efforts to attract Foreign Direct Investment by closing down a mining site.
Committee’s Terms of Reference
Alake had previously responded to claims and counterclaims between the Osun State Government and Thor Explorations Limited, the owner of Segilola Resources Operating Limited (SROL), regarding alleged taxation and operational issues.
On September 30, 2024, the Osun State Government reportedly sealed the business premises of SROL, insisting that a court ordered the state to confiscate the company for “flagrant tax violations” and other operational matters.
The state government charged the company with unethical business practices and tax evasion amounting to approximately 1.9 million US dollars.
As noted on the company’s website, it operates a gold project located in Osun State, Nigeria.
The Segilola Gold Mine has reportedly completed two full years of production, with a total gold production of 98,006 ounces in 2022 and 84,609 ounces in the 2023 calendar year, and is targeting 95,000-100,000 ounces of gold in the 2024 calendar year.
On Wednesday, Alake inaugurated a fact-finding team in response to the ongoing dispute.
He emphasized that mining falls under the exclusive legislative list, meaning sub-national authorities cannot unilaterally disrupt mining operations.
“While mining companies must comply with laws regarding taxes, environmental regulations, and Corporate Social Responsibility (CSR), it is essential to recognize that the Federal Government has the exclusive authority to regulate and oversee mining activities,” he said.
He outlined the committee’s Terms of Reference, which include identifying the root causes of the disagreement, reviewing the contractual obligations between the Osun State Government and SROL, and “evaluating the impact of the company’s operations on local communities and the broader economy.”
“The committee has seven days to submit its report,” he said.
More Insights
Alake had previously announced that the fact-finding team would comprise Dr. Mary Ogbe, the Permanent Secretary of the Ministry, representatives from the Federal Inland Revenue Service (FIRS), the Ministry of Labour and Employment, and the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
“I want to emphasize that the Federal Government has been actively promoting investment opportunities in the solid minerals sector around the world. It is crucial to recognize that closing down mining operations by subnational governments could jeopardize our efforts to attract Foreign Direct Investments (FDI) and may even lead to divestment by existing companies,” Alake stated.
He highlighted that it is essential for both parties to pursue peace and industrial harmony for the benefit of the workers and their families who could be negatively affected by the closure of operations at the factory.
Leave a Comment