The Minister of Solid Minerals Development, Dr. Dele Alake, has cautioned state governments against arbitrarily shutting down mining operations, warning that such actions could derail the Federal Government’s efforts to attract Foreign Direct Investment (FDI) and may prompt existing companies to divest.
Speaking in Abuja through his Special Assistant on Media, Segun Tomori, Dr. Alake announced the formation of a fact-finding committee to address the dispute between the Osun State government and Thor Explorations Limited, the owners of Segilola Resources Operating Limited. The conflict involves taxation and operational issues.
Alake stressed that mining regulation and operations are the exclusive domain of the Federal Government, not state governments. He noted that state interference could jeopardize the government’s push to market investment opportunities in Nigeria’s solid minerals sector globally.
“Indiscriminate closures of mining operations by sub-nationals raise the risk of discouraging foreign direct investments and, even worse, could result in divestment by existing companies. Mining is on the exclusive legislative list. The Ministry of Solid Minerals should be consulted before such disruptive actions are taken,” Alake stated.
He highlighted the Federal Government’s commitment to boosting economic growth, creating employment, and fostering community development through increased mining activities. Alake emphasized that halting industrial production would harm economic prosperity, deprive workers of income, and contribute to economic challenges.
The minister called on both the Osun State government, led by Governor Ademola Adeleke, and Thor Explorations Limited to cooperate with the fact-finding team and maintain industrial peace while the issues are being resolved.
“I urge His Excellency, Governor Ademola Adeleke, and the management of Thor Explorations Limited to work towards peace and industrial harmony for the benefit of the workers and their families who may suffer from the disruption of operations,” Alake said.
The committee, headed by the Permanent Secretary of the Ministry, Dr. Mary Ogbe, includes representatives from the Federal Inland Revenue Service (FIRS), the Ministry of Labour and Employment, and the National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA).
The committee is tasked with investigating the claims and counterclaims between the Osun State government and Thor Explorations, aiming to resolve the dispute and restore harmony in the sector.
