The Federal Ministry of Solid Minerals Development has issued a warning to the Osun State Government, cautioning that closing a mining site could undermine efforts to attract Foreign Direct Investment (FDI) in Nigeria.
Minister Dr. Dele Alake made this statement on Friday, October 5, 2024, via his X page, in response to ongoing disputes between the Osun State Government and Thor Explorations Limited, which operates Segilola Resources Operating Limited (SROL).
On September 30, 2024, the Osun State Government reportedly sealed SROL’s premises, claiming a court order mandated the closure due to alleged tax violations and operational issues. The state accused the company of unethical practices and tax evasion totaling approximately $1.9 million.
SROL operates the Segilola Gold Mine in Osun State, which has produced a total of 98,006 ounces of gold in 2022 and 84,609 ounces in 2023, with a target of 95,000-100,000 ounces for 2024.
To address the conflict and restore industrial harmony, Alake has formed a fact-finding team that includes representatives from various governmental bodies and organizations. He emphasized that closing mining operations by state governments could deter FDI and even lead to divestment by existing companies.
Alake stressed that mining falls under the exclusive legislative list and that the Ministry of Solid Minerals should be consulted before any state takes disruptive actions against investors. He urged both parties to cooperate with the fact-finding team and allow production to continue while resolving the issues at hand.
He highlighted the importance of pursuing peace and industrial harmony for the benefit of workers and their families who could be adversely affected by the closure of operations.
