The federal government has inaugurated an eight-man committee to settle the dispute between the Osun State government and the mining firm Thor Explorations Limited, owners of Segilola Resources Operating Limited, the biggest gold mine in Nigeria.
The minister of solid minerals development, Dele Alake, inaugurated the committee on Wednesday at the ministry’s headquarters in Abuja. The committee has seven days to conclude and submit its recommendations.
The committee will investigate the underlying causes of the conflict and provide actionable recommendations.
Alake said the faceoff between the Osun State government and Segilola Limited was symptomatic of what was happening between mining companies and their host states in other states.
The minister noted that as much as mining companies are supposed to obey the local laws where they operate – whether environmental, social or economic, the state government must, however, stop taking the laws into their hands and report any disagreements with mining firms to the ministry for intervention rather than banning mining operations. This action is beyond its powers as mineral governance is on the exclusive list, which only federal governance can legislate and regulate.
“State government does not have the power to shut down the operations of any mining firm arbitrarily. Mining is on the exclusive legislative list, and the Ministry of Solid Minerals should be consulted before such disruptive actions are taken,” Alake noted.
Dr Alake also expressed concern that the activities of some state governments were scaring away foreign investors, and President Bola Tinubu has done an arduous but remarkable job of attracting them to the country.
Inaugurating the committee yesterday, Alake gave them their key objectives, which include identifying the root causes of the disagreement between the Osun State Government and Segilola Resources Operating Limited, to review the contractual obligations and agreements between both parties to determine whether there have been breaches or misunderstandings; to assess the socio-economic, environmental, and legal aspects of the operations carried out by Segilola Resources Operating Limited; to evaluate the impact of the company’s operations on the host communities and the broader Osun State economy; and to propose solutions that ensure the continuation of mining activities while safeguarding the interests of the state and the affected communities. Make any other recommendations enabling the government to make informed decisions to resolve the lingering dispute between SRSL and OSSG.”
Responding on behalf of the committee, the Vice-Chairman and representative of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr Dele Oye, assured the minister that the panel would serve with the utmost integrity in fulfilling its terms of reference.
The permanent secretary, Dr Mary Ogbe, urged states to cooperate with the Federal Government to avoid disruptions in mining operations, as such actions can discourage prospective investors.
The committee members include the Ministry of Mines Inspectorate director, Engr. Imam Ganiyu (chairman), a representative of NACCIMA, Dr Dele Oye (Vice-Chairman), and Mr Pwol Dareng, Assistant Director of the Organised Private Sector (OPS) of the Ministry (Secretary).
Other members are the director of Mines Environmental Compliance (MEC), Dr Vivian Okono; director of Legal, Mrs N.C Odili; representative of Federal Inland Revenue Service (FIRS); chief of staff to the executive chairman, Tayo Koleosho; representative of Nigerian Investment Promotion Commission (NIPC), Zubeir S. Abubakar.
LEADERSHIP reports that on September 30, the Osun State Government sealed up the business premises of Segilola Resources Operating Limited, following a court order permitting the state to restrain the company for various tax violations and failure to fully disclose the employees directly and indirectly involved in its business activities.
Segilola Resources Operating Limited is a subsidiary of Thors Explorations Limited, listed on the London and Toronto Stock Exchanges. It is one of the significant companies in the state’s mining activities and mineral exploration.
A state government statement read, “After a series of demands, meetings, consultations, and engagements, the company remained adamant and remorseless in its tax evasion and other violations. The Attorney General of Osun State approached the court and consequently obtained an order to seal up the company until the due sum calculated from 2019 to 2023 is fully liquidated into the Osun State Government account.”
Earlier, the state government demanded N60 billion in dividends accruing to the state from the Segilola Gold Project and raised serious concerns about the company’s operations.
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