*Justice A. A. Aderibigbe of an Osun State High Court rules in favour of the Osun State Government of Nigeria, ordering Segilola Resources Operating Limited from resuming, performing, operating its gold-mining business in the South-West state until all government鈥檚 outstanding tax accruable from 2019 to 2023, and development levy payable to Osun are fully liquidated or paid to the state government

Gbenga Kayode | 绿帽献妻

Despite recent intervention by the Minister for Solid Minerals Development (MSMD) in their face-off over shareholding entitlements and accumulated tax liabilities, an Osun State High Court Monday, October 7, 2024, issued a restraining order against Segilola Resources Operating Limited (SROL), stopping the company鈥檚 gold-mining operations in the state forthwith.

绿帽献妻 reports the latest development resulting from the crisis of confidence between the state and SROL was sequel to the Osun State Government鈥檚 fresh application before the court against the mining firm over accumulated tax liabilities of over N60 billion due to the state government.

Court ordered the Osun State Government to seal off SROL’s premises recently聽

However, ruling in favour of the Osun State Government, Justice A. A. Aderibigbe, Monday, ruled against Segilola Resources Operating Limited from resuming, performing, operating her business in Osun State until all her outstanding tax (Payee) accruable from 2019 to 2023, and development levy payable to Osun State are fully liquidated or paid into the covers or account of Osun State Government.

Osun State Government鈥檚 demand from Thor Explorations

Dr. Wale Bolorunduro, Financial Consultant to the Office of Mining and Mineral Resources, in a recent statement on behalf of the Osun State Government, has alleged that Thors Explorations Limited, United Kingdom (UK), owner of Segilola Resources Operating Limited, was operating six other companies on the site without disclosure to the state government for tax and environmental accountability purposes.

The Osun State Government further affirmed that Thor Explorations Limited UK confirmed that Osun Government has 5,192,896 (Five Million, One Hundred and Ninety-Two Thousand, Eight Hundred and Ninety-Six) units of shares in the company, insisting that Osun is then, entitled to collect financial implications to date as a shareholder.

Dr. Bolorunduro stated: 鈥淭he efforts and demand of Osun State to realise our claims, which is over 60 billion Naira in monetary value and Redeemable Shares as financial considerations for acquiring Osun State鈥檚 interest in Tropical Mines Limited have always been rebuffed by Segilola Operating Resources Limited.鈥�

Osun Government also argued: 鈥淎t least four meetings had been held with the Executive Governor, H.E. Governor Adeleke and the CEO of SROL, Mr. Segun Lawson, in attendance and with promises made to commence payment.

鈥淥nly for the company to renege on its promises, and choose to go and misrepresent the state in Abuja, Ministry of Solid Minerals (Development).鈥�

Minister sues for peace over Osun Government, Segilola鈥檚 dispute

In a bid to resolve the dispute between Osun Government and Segilola Resources, the Federal Government led by Dr. Oladele Alake, Honourable Minister for Solid Minerals Development, had appealed to the parties to resolve the burning issue amicably.

Dr. Alake, in a statement October 4 disclosed that a fact-finding team had been constituted to engage both parties towards resolving the dispute and restoring industrial harmony.

The statement noted that Dr. Mary Ogbe, Permanent Secretary of the Ministry, is leading the Committee that also includes representatives of the Federal Inland Revenue Service (FIRS), Ministry of Labour and Employment, and National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

The Ministry as well said Alake observed that the Federal Government has been marketing opportunities for investments in the solid minerals sector across the world.

The Minister, therefore, cautioned that closure of mining operations by subnationals could abort Nigeria鈥檚 efforts at attracting more Foreign Direct Investments (FDIs), and provoke divestment.

Effects of shutting mining operations on attracting FDIs, by Alake

Dr. Alake, in the statement equally asserted: 鈥淚ndiscriminate closures of mining operations by subnationals raises the risk of discouraging Foreign Direct Investments (FDIs), and even worse, possible divestment by existing companies.

鈥淢ining is on the Exclusive Legislative list. The Ministry of Solid Minerals should be consulted before such disruptive actions are taken.鈥�

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

According to Alake, any cessation of industrial production would undermine the goals of economic prosperity, deny workers the opportunity to earn income, and further contribute to adversity in the Nigerian economy.

He, therefore, urged both the Osun State Government, Thor Explorations Limited UK, and Segilola Resources Operating Limited to cooperate with the fact-finding team and allow production to continue while the issues are resolved.

鈥淚 hereby call on His Excellency, the Governor of Osun State, Sen. Ademola Adeleke, and the Management of Thor Explorations 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,鈥� stated the Minister for Solid Minerals Development.

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