FG probes sealing of Osun mining firm
The Minister of Solid Minerals Development, Dele Alake, has officially inaugurated a fact-finding team in response to the ongoing conflict between the Osun State government and Segilola Resources Operating Limited.
This was disclosed on Wednesday in a statement by the Special Assistant to the Minister on Media, Segun Tomori.
The committee has the Director of Mines Inspectorate at the ministry as chairman, a representative of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, Dr Dele Oye, as vice chairman and the Assistant Director, Organised Private Sector, Mr Pwol Dareng, as secretary.
Other members include the Director of Mines Environmental Compliance, Dr. Vivian Okono; Director of Legal, Mrs. N.C. Odili; and representatives from the Federal Inland Revenue Service and the Nigerian Investment Promotion Commission.
The committee was established following the recent sealing of the gold mining company, which was accused of tax evasion and other infractions.
The PUNCH reports that on September 30, 2024, the Osun State government sealed off the business premises of Segilola Resources Operating Limited.
The move followed an order of an Osogbo Chief Magistrates’ Court presided over by Dr Segun Ayilara, which granted the request of the government to distrain the company for various tax violations.
Speaking at the press briefing on Wednesday, Alake noted that the Federal Government recognised the complexities of the mining sector and encouraged collaboration with state governments.
He highlighted the allowance for states to apply for mining licences and their involvement through the Mineral Resources and Environmental Management Committee.
“MIREMCO exists in all states of the federation and is responsible for ensuring that mining companies comply with existing regulations.
“Of the eight members on each state’s MIREMCO, five, including the chairman, are nominated by state governments, indicating that states are already significantly involved in regulating mining activities.
“Thus, there should be no reason for constitutional violations,” he added.
Alake gave the committee seven days to turn in a report indicating the root causes of the disagreement between the Osun State government and SROL, the review of the contractual obligations between the parties, and the impact of the company’s operations on local communities and the state’s economy.
He restressed the Federal Government’s stance that mining activities fall under the exclusive legislative list, adding that sub-national governments lacked the authority to unilaterally halt operations.
The PUNCH reports on Friday, October 4, 2024, a statement by Alake, stating that “No state government has that authority. It is a no-brainer and is a constitutional matter. Mining belongs exclusively to the purview of the Federal Government.
“According to the Constitution, it is in the exclusive legislative list and not in the residual or concurrent.”
Speaking at the panel inauguration on Wednesday, Alake said, “I’d like to reaffirm our position that while mining companies must adhere to all relevant laws and regulations, including tax payments, environmental standards, and Corporate Social Responsibility, it is our firm belief that sub-national authorities do not possess the power to arbitrarily shut down mining operations.
“The regulation of liquid or solid minerals is the purview of the Federal Government.”
The Permanent Secretary of the ministry, Dr. Mary Ogbe, urged state governments to cooperate with the Federal Government to prevent disruptions in mining operations.
She stressed that such disruptions could send negative signals to potential investors and deter Foreign Direct Investment, which is crucial for sector development.
Responding on behalf of the committee, Dr Oye assured the minister that the panel would operate with the utmost integrity to fulfil its mandate.
