The Minister of Solid Minerals Development, Mr. Dele Alake, has warned against the arbitrary closure of mining operations by state governments, indicating that such actions could jeopardize Foreign Direct Investments (FDI) in Nigeria’s solid minerals sector. He announced a fact-finding committee to address the dispute between the Osun State government and Thor Explorations Limited over operational issues, reaffirming that mining regulation is a federal responsibility. The minister urged both parties to collaborate towards resolving the conflict to avoid economic disruptions.
Mr. Dele Alake, the Minister of Solid Minerals Development in Nigeria, has expressed concern over the arbitrary shutdown of mining operations by state governments, emphasizing that such unilateral actions could impede the federal government’s initiatives aimed at attracting Foreign Direct Investments (FDI) in the sector. His remarks were made during the announcement of a fact-finding committee tasked with investigating the ongoing dispute between the Osun State government and Thor Explorations Limited, operators of Segilola Resources Operating Limited, concerning taxation and operational issues. Minister Alake articulated that mining operations fall under the exclusive jurisdiction of the federal government, cautioning that state-level interventions could lead to adverse repercussions for investment strategies and economic growth. He directed the newly formed committee, led by Dr. Mary Ogbe, the Permanent Secretary of the Ministry, to facilitate discussions between Osun State and Thor Explorations Limited with the aim of resolving the contention and restoring operational stability in the industry. Recognizing the federal government’s endeavors to promote investment opportunities in the solid minerals industry globally, Alake warned that abrupt halting of mining activities could undermine these efforts, leading to diminished investor confidence and potentially provoking divestment from existing operations. He asserted, “Indiscriminate closures of mining operations by sub-nationals raises the risk of discouraging foreign direct investments and even worse, possible divestment by existing companies. Mining is on the exclusive legislative list. The Ministry of Solid Minerals should be consulted before such disruptive actions are taken.” Furthermore, he highlighted that such disruptions could stifle industrial growth, depriving workers of income opportunities and thereby exacerbating socio-economic challenges. Alake called for cooperation between the conflicting parties and urged the Governor of Osun State, Senator Ademola Adeleke, as well as the management of Thor Exploration Limited, to pursue a peaceful resolution in the interest of affected workers and their families. The fact-finding committee will 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).
The article discusses the concerns raised by the Minister of Solid Minerals Development regarding state-level mining operations closures in Nigeria. This issue stems from a conflict between the Osun State government and a private mining firm, which could have broader implications for the country’s foreign investment landscape in the solid minerals sector. Alake’s caution emphasizes the exclusive domain of the federal government over mining regulations and the potential negative consequences of state interference on investment and economic growth.
In conclusion, Mr. Dele Alake’s warning underscores the critical importance of maintaining a stable mining operation environment to foster Foreign Direct Investments in Nigeria’s solid minerals sector. The establishment of a fact-finding committee aims to resolve disputes between state governments and private enterprises, thereby ensuring industrial harmony and safeguarding economic prospects for workers and the nation. The minister’s call for cooperation emphasizes the necessity of aligning state actions with federal policies to achieve sustained economic growth.
Original Source: www.arise.tv
