…says indiscriminate closures of mining operations discourages investors

By Gabriel Ewepu

ABUJA- THE Minister of Solid Minerals Development, Dr. Dele Alake, has stepped into the feud between the Osun State Government and Thor Explorations Limited, owners of the Segilola Resources Operating Limited over taxation and operational matters.

This was made known in a statement signed by the Special Assistant to Minister of Solid Minerals Development, Segun Tomori, where it mentioned that Alake announced today that a fact-finding team has been set up to engage both parties towards resolving the dispute and restoring industrial harmony.

However, according to the statement, the Ministry of Solid Minerals Development is probing the claims and counter-claims between the Osun State Government and the company on the issues causing the disagreement.

The statement read, “The Minister of Solid Minerals Development, Dr. Dele Alake announced today that a fact-finding team has been set up to engage both parties towards resolving the dispute and restoring industrial harmony.

“Led by Dr. Mary Ogbe, the Permanent Secretary, Ministry of Solid Minerals Development (MSMD), the committee will include representatives of the Federal Inland Revenue Service (FIRS), Ministry of Labour and Employment and the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

“The Minister observed that the Federal Government has been marketing opportunities for investments in the solid minerals sector across the world and cautioned that closure of mining operations by sub-nationals could abort efforts to attract Foreign Direct Investments (FDI) and provoke divestment.”

The statement quoted Alake saying that, “Indiscriminate closures of mining operations by sub-nationals raises the risk of discouraging foreign direct investments and even worse, possible 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.”

The Minister reiterated the Federal Government’s interest in raising the tempo of productive activities nationwide to boost economic growth, increase employment and community development.

However, the Minister warned about the implications of the matter and pointed out that any cessation of industrial production will undermine the goals of economic prosperity, deny workers the opportunity to earn income, and further contribute to adversity.

He (Alake), therefore, called on both parties to cooperate with the fact-finding team and allow production to continue while the issues are resolved.

“I hereby call on His Excellency, the Governor of Osun State, Sen. Ademola Adeleke and the management of Thor Exploration Limited to sue for peace and industrial harmony in the interest of the workers and their dependents who may be adversely affected by closure of operations at the factory”, he added.