Nigeria’s Solid Minerals Ministry Investigates Gold Mining Dispute in Osun

Nigeria’s Federal Ministry of Solid Minerals Development (FMSMD) has initiated an investigation into the ongoing dispute between the Osun State Government and Segilola Resources Operating Limited, a subsidiary of Thor Explorations Limited, over taxation and operational concerns. The move is aimed at resolving the conflict and restoring industrial harmony in the region.

Speaking at a press briefing in Abuja, the Minister of Solid Minerals Development, Dr. Dele Alake, announced the formation of a fact-finding team led by the Permanent Secretary of the Ministry, Dr. Mary Ogbe. The team will engage with both parties to address the disagreements. It will also include representatives from the Federal Inland Revenue Service, the Ministry of Labor and Employment, and the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

Dr. Alake emphasized the importance of maintaining smooth operations in the solid minerals sector to avoid discouraging Foreign Direct Investments (FDI) or triggering divestment. He stressed that mining falls under the exclusive legislative list, meaning the Federal Government has primary authority, and any decisions to halt operations should be made in consultation with the Ministry of Solid Minerals.

The Minister also highlighted the Federal Government’s commitment to boosting economic growth, creating employment opportunities, and enhancing community development through increased industrial activities. Any halt in production, he noted, would undermine these goals and negatively affect workers and their families.

In a call for peace, Dr. Alake urged Osun State Governor, Senator Ademola Adeleke, and the management of Thor Explorations to cooperate with the fact-finding team and allow production to resume while the investigation is ongoing. He warned that a prolonged shutdown would harm not only the workers but also the broader economy.

The dispute escalated on September 30, 2024, when the Osun State Government sealed off Segilola Resources’ premises over alleged tax evasion and operational misconduct. The government accused the company of failing to disclose employee information and obstructing tax processes, but Segilola has strongly disputed these allegations.