A Federal High Court in Abuja has granted an interim injunction in favour of Segilola Resources Operating Limited (SROL), restraining the Osun State Government and its officials from interfering with the company’s mining operations. The order was issued by Justice Emeka Nwite on Thursday, following an ex parte motion filed by the company.
The injunction prevents the Osun State Government from disrupting SROL’s gold mining operations or denying the company access to its mining site. This comes amidst ongoing allegations against the company regarding tax liabilities and environmental concerns, an accusation SROL has strongly denied.
The injunction is set to remain in effect pending the hearing of a Motion on Notice for an interlocutory injunction scheduled for 17 October 2024.
Legal experts suggest that the court’s ruling reinforce the importance of respecting judicial processes in settling disputes, particularly in sensitive mining sectors where operational disruptions can have far-reaching economic implications.
With the matter now before the court, stakeholders are looking for an interpretation of the relevant provisions of the law as both parties maintain the status quo.
On 30 September 2024, the Osun State Government sealed SROL’s business premises, following a court order permitting the state to restrain the company for violating tax laws.
However, SROL, which operates Nigeria’s first commercial gold mine and one of the country’s most successful mining ventures, has consistently maintained its compliance with all relevant regulations and commitment to upholding its responsibilities as a law-abiding corporate entity. Industry observers believe that the resolution of this case could have broader implications for Nigeria’s mining sector and investor confidence.
Meanwhile, the Federal Government through the Ministry of Solid Minerals Development has initiated an investigation into the matter between SROL and the Osun State Government to restore operational and industrial harmony in the state.
In a recent statement, the Minister for Solid Minerals Development, Dr. Dele Alake emphasised the importance of protecting investments in the Nigerian mining sector, stressing that mining falls under the exclusive legislative list, and the Ministry of Solid Minerals should be consulted before any disruptive actions are taken as that may have serious economic implications for stakeholders.
“I want to emphasise that the Federal Government has been actively promoting investment opportunities in the solid minerals sector around the world. It is crucial to recognise that closing down mining operations by subnational governments could jeopardize our efforts to attract Foreign Direct Investments and may even lead to divestment by existing companies”, Alake cautioned.
He urged both parties “to cooperate with the fact-finding team and allow production to continue while we work through these issues. It is essential that both parties pursue peace and industrial harmony for the benefit of the workers and their families who could be negatively affected by the closure of operations at the factory”.
