Dele Alake, minister of solid minerals development, has inaugurated an eight-member panel to investigate the dispute between the Osun state government and Segilola Resources Operating Limited (SROL).
Last week, the minister set up a committee up to probe the circumstances that led to the sealing off of the gold mining company over alleged tax evasion and other sundry infractions.
In a statement on Wednesday, Alake said sub-nationals lack the power to independently disrupt mining operations across the country, noting that mining is on the exclusive legislative list.
The minister highlighted the federal government’s recognition of the unique challenges in the mining sector and reiterated its commitment to collaborating with sub-nationals.
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He said state governments are allowed to apply for mining licenses and can utilise their representatives in the mineral resources and environmental management committee (MIREMCO) to oversee mining activities.
“I will 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,” the statement reads.
“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.
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“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.”
Members of the committee include Imam Ganiyu, director, mines inspectorate of the ministry (chairman); Dele Oye, representative of NACCIMA (vice-chairman); and Pwol Dareng, assistant director, organised private sector (OPS) of the ministry (secretary).
Other members are Vivian Okono, director of mines environmental compliance (MEC); N.C. Odili, director of legal; Tayo Koleosho, representative of the Federal Inland Revenue Service (FIRS); and Zubeir S. Abubakar, representative of the Nigerian Investment Promotion Commission (NIPC).
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During the committee’s inauguration, Alake outlined the terms of reference (ToR), which include identifying the root causes of the dispute between the Osun government and SROL, reviewing contractual obligations and agreements between both parties, and assessing the impact of the company’s operations on host communities.
Mary Ogbe, the permanent secretary of the ministry, urged states to cooperate with the federal government to avoid disruptions in mining operations.
Ogbe said 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.
The panel is expected to submit its report within seven days.
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