Nigeria’s Minister of Solid Minerals Development, Dr. Dele Alake has pledged that his ministry will work to find a solution to the current conflict between Segilola Resources Operating Limited and the Osun State government.
This is coming after the minister established an investigative team to look into the causes of the conflict between the mining corporation and the state. Nigerian Mining reported that last week, that the Minister formed a fact-finding commission to investigate the events leading to the gold mining company’s closure due to suspected tax evasion and other infractions.
The state government shut down the mining company’s facilities on September 30 due to a number of alleged tax infractions and other operational issues. The state administration possessed business activities, as well as over $1.9 million in tax avoidance.
As a result, the business obtained a court order prohibiting the Osun State Government and its representatives from meddling in the business’ mining operations.
During a news conference held on Wednesday in Abuja at the ministry’s headquarters, Dr. Alake reiterated the federal government’s stance that mining is under the exclusive legislative list and that, as a result, sub-nationals lack the authority to impose their own unilateral disruptions on mining operations throughout the nation.
“I would like to reaffirm our position that though mining companies must obey all laws and regulations guiding their operations such as payment of taxes, environmental regulations, and Corporate Social Responsibility amongst others, it is our firm belief that sub-national authorities do not possess the power to arbitrarily shut down mining operations because the mining of liquid or solid minerals belongs in the exclusive list, within the purview of the Federal Government, to regulate, legislate and direct,” the minister declared.
In order to allow states to apply for mining licenses and actively participate in the mining industry while utilising their nominees in the process, the Minister emphasised that the Federal Government recognises the unique characteristics of the mining environment and the necessity of working with sub-nationals. in charge of overseeing mining operations within their purview in the Mineral Resources and Environmental Management Committee.
“MIREMCO is a federal organisation with operations in every state in the union. Its primary duty is to monitor mining companies’ adherence to current laws and regulations. Because five of the eight members of MIREMCO—including the chairman—are chosen by state governments, states are already heavily involved in the regulation of mining activities.” Alake continued, “Therefore, there ought to be no justification for constitutional violations.
Alake announced at the committee’s inaugural meeting that among its responsibilities would be determining the underlying reasons for the dispute between Segilola Resources Operating Limited and the state government of Osun, examining the parties’ respective agreements and contracts, Analysing the influence the impact of the business’s operations on host communities and the overall economy of Osun State, among other things.
In her speech, Permanent Secretary Dr. Mary Ogbe urged states to work with the federal government to prevent disruptions in mining operations. She emphasised that these kinds of actions can discourage foreign direct investment, which is necessary to develop the sector, and send the wrong signals to potential investors.
In his response, the vice-chairman of the committee and spokesman for the Nigeria Association of Chambers of Commerce, Industry, Mines, and Agriculture, Dr. Dele Oye, gave the minister the assurance that the panel would carry out its mandate with the highest integrity.
The chairman of the committee, Engineer Imam Ganiyu, is the Director of the Ministry’s Mines Inspectorate. NACCIMA, Dr. Dele Oye (Vice-Chairman), Mr. Pwol Dareng, Assistant Director, Ministry of the Organised Private Sector (Secretary). Additional members include Dr. Vivian Okono, Director of Mines Environmental Compliance; Mrs. N.C. Odili, Director of Legal; a representative from the Federal Inland Revenue Service; Tayo Koleosho, Chief of Staff; and Zubeir S. Abubakar, a representative of the Nigerian Investment Promotion Commission.
The inquiry panel has seven days to turn in its findings.
