- The Federal Government is taking steps to resolve the ongoing conflict between the Osun State Government and Segilola Resources Operating Limited
- Minister Alake emphasised that mining operations fall under the exclusive legislative purview of the federal government
- This committee includes members nominated by state governments, allowing for substantial state involvement in mining regulation.
The Federal Government is taking steps to resolve the ongoing conflict between the Osun State Government and Segilola Resources Operating Limited, a gold mining company.
Dr. Dele Alake, the Minister of Solid Minerals Development, announced the inauguration on Wednesday, October 9, of a fact-finding team aimed at investigating the dispute's root causes.
This announcement follows the Osun State Government's decision on September 30 to seal the mining company's premises, citing allegations of tax evasion and other operational infractions amounting to approximately $1.9 million. The state accused Segilola Resources of engaging in unethical business practices.
In response to the state's actions, Segilola Resources obtained a court order preventing the Osun State Government from interfering with its operations. During a press briefing at the ministry headquarters, Minister Alake emphasised that mining operations fall under the exclusive legislative purview of the federal government, meaning sub-national authorities cannot unilaterally halt these operations.
Alake stated, "While mining companies must comply with all relevant laws and regulations, including tax obligations and environmental standards, it is crucial to recognise that sub-national authorities do not have the power to arbitrarily shut down mining activities."
The minister highlighted the importance of collaboration between federal and state governments in the mining sector, pointing to the role of the Mineral Resources and Environmental Management Committee (MIREMCO).
This committee includes members nominated by state governments, allowing for substantial state involvement in mining regulation.
In inaugurating the fact-finding committee, Alake outlined its objectives, which include identifying the causes of the disagreement, reviewing contracts between the two parties, and assessing the impact of the mining operations on local communities and the Osun State economy.
Dr. Mary Ogbe, Permanent Secretary of the ministry, urged state governments to work in partnership with the federal government to prevent disruptions in mining operations, warning that such actions could deter foreign investment in the sector.
Dr. Dele Oye, the committee's Vice-Chairman and a representative of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, assured the minister of the committee's commitment to integrity and diligence in its investigation.
The committee, which includes experts from various governmental and industry sectors, has been given seven days to submit its report on the matter.
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