Osun/Segilola Face-off: Alake Inaugurates Probe Panel, Insists States Lack Powers to Shut Mining Operations

Folalumi Alaran in Abuja

The Minister of Solid Minerals Development, Dele Alake, has inaugurated the fact-finding team constituted in the heat of the face-off between Osun State Government and Segilola Resources Operating Limited (SROL).

The minister last week 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.

In a press briefing, 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.

“This is 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.

The minister 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.

The minister 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.

He added that this is 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 members that constitute MIREMCO in each state, five  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, Alake declared its Terms of Reference (ToR) to include: Identifying the root causes of the disagreement between Osun State Government and Segilola Resources Operating Limited (SROL); Review of contractual obligations and agreements between both parties; evaluate the impact of the company’s operations on host communities and the wider Osun State economy amongst others.

In her remarks, the Permanent Secretary, 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.