By:Nairametrics

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.