The Minister of Solid Minerals Development, Dr. Dele Alake has inaugurated a fact-finding team constituted in the heat of the face-off between Osun State Government and Segilola Resources Operating Limited (SROL).
Last week, the minister announced the constitution of a fact-finding committee to look into the circumstances that led to the sealing off of the gold mining company on account of alleged tax evasion and other sundry infractions.
But last Thursday, Justice Emeka Nwite of the Federal High Court in Abuja granted an interim injunction in favour of SROL, restraining the Osun State Government and its officials from interfering with the company’s mining operations.
In a media briefing on Wednesday, Alake restated the position of the Federal Government that mining belongs to the exclusive legislative list and as such, sub-nationals have no powers to unilaterally disrupt mining operations across the country.
“I’d like to reaffirm our position that though mining companies must obey all laws and regulations guiding their operations such as payment of taxes, environmental regulations, Corporate Social Responsibility (CSR) amongst others, it is our firm belief that sub national authorities do not possess the power to arbitrarily shut down mining operations because the mining of liquid or solid minerals belongs in the exclusive list, within the purview of the Federal Government, to regulate, legislate and direct”, the minister asserted.
He stressed that the Federal Government understands the peculiarities of the mining environment and the need to collaborate with sub-nationals, hence the leeway provided for states to apply for mining licenses to participate actively in the mining sector whilst taking advantage of their nominees in the Mineral Resources and Environmental Management Committee (MIREMCO) to superintend over mining activities in their domain.
“MIREMCO exists in all states of the federation, and they are charged with the responsibility of ensuring compliance of mining companies with the extant regulations and laws. Out of the eight (8) members that constitute MIREMCO in each state, five (5) including the chairman are nominated by State Governments hence states are already substantially involved in the regulation of mining activities, thus, there should be no reason for constitutional violations”, Alake added.
Inaugurating the committee, the minister declared its Terms of Reference to include identifying the root causes of the disagreement between Osun State Government and SROL, review of contractual obligations and agreements between both parties, and evaluate the impact of the company’s operations on host communities and the wider Osun State economy.
The Permanent Secretary of the Ministry, Dr. Mary Ogbe urged states to cooperate with the Federal Government to avoid disruptions in mining operations, emphasising that such actions send wrong signals to prospective investors and can be a disincentive to the needed Foreign Direct Investment (FDI) required to develop the sector.
Responding on behalf of the committee, the Vice-Chairman and representative of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr. Dele Oye assured the minister that the panel will serve with utmost integrity in fulfilling its terms of reference.
Members of the committee include Director, Mines Inspectorate of the Ministry, Engr. Imam Ganiyu (Chairman); representative of NACCIMA, Dr. Dele Oye (Vice-Chairman); Assistant Director of Organised Private Sector of the Ministry, Mr. Pwol Dareng (Secretary). Other members are Director of Mines Environmental Compliance, Dr. Vivian Okono; Director of Legal, Mrs. N. C. Odili; Chief of Staff to the Executive Chairman of the Federal Inland Revenue Service, Tayo Koleosho; and representative of Nigerian Investment Promotion Commision, Zubeir S. Abubakar.
The probe panel has seven days to submit its report.
