The federal government has expressed worry that closing down mining operations by state governments could jeopardise its efforts to attract Foreign Direct Investments (FDI) and might even lead to divestment by existing companies.
It reiterated that mining falls under the exclusive legislative list, saying the Ministry of Solid Minerals should be consulted before any disruptive actions are taken.
To this end, the Ministry of Solid Minerals Development said it was looking into the claims and counter-claims between the Osun State government and Thor Explorations Limited, the owners of Segilola Resources Operating Limited, regarding taxation and operational issues.
The Minister, Delete Alake made this known in a post on his verified X handle, adding that to address the dispute and restore industrial harmony, he has set up a fact-finding team.
He said this team would be led by Dr. Mary Ogbe, the Permanent Secretary of the ministry, and would include representatives from the Federal Inland Revenue Service (FIRS), the Ministry of Labour and Employment, and the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
Aleke noted: “I want to emphasise that the Federal government has been actively promoting investment opportunities in the solid minerals sector around the world. It is crucial to recognize that closing down mining operations by subnational governments could jeopardize our efforts to attract Foreign Direct Investments (FDI) and may even lead to divestment by existing companies.
“Mining falls under the exclusive legislative list, and the Ministry of Solid Minerals should be consulted before any disruptive actions are taken.
“I remain committed to increasing productive activities across the nation to boost economic growth, create jobs, and support community development.
“Any halt in industrial production undermines our goals for economic prosperity, deprives workers of their income, and contributes to further hardship.”
Aleke, therefore, urged both parties to cooperate with the fact-finding team and allow production to continue while it works through these issues.
He stressed that It is essential that both parties pursue peace and industrial harmony for the benefit of the workers and their families who could be negatively affected by the closure of operations at the factory.