The Ministry of Solid Minerals Development has described the sealing of mining company, Thor Exploration Company, the parent company of Segilola Resources Operating by the Osun State Government as disruptive and action capable of discouraging foreign direct investment.
This is as the ministry launched a probe into the ongoing dispute between the Osun State Government and the company over taxation and operational matters.
The Minister of Solid Minerals Development, Dele Alake, announced that a high-powered fact-finding team has been constituted to mediate and resolve the conflict in a bid to restore industrial harmony.
A statement signed by the Special Assistant on Media to the Minister, Segun Tomori on Saturday in Abuja, said the committee, to be led by Dr. Mary Ogbe, the Permanent Secretary of the Ministry, will include representatives from key government agencies such as 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 core of the dispute centers around taxation and operational issues, with both parties presenting claims and counterclaims that have disrupted operations at Segilola, Nigeria’s first large-scale gold mine. With tensions rising, the Federal Government has stepped in to prevent further damage to the investment climate and local economy.
Alake expressed concerns that the closure of mining operations by subnational governments, such as Osun State, could harm Nigeria’s efforts to attract Foreign Direct Investment (FDI) into the solid minerals sector, warning of the potential for existing investors to pull out.
“Indiscriminate closures of mining operations by subnationals raise the risk of discouraging foreign direct investments and, even worse, possible divestment by existing companies.
Mining is on the exclusive legislative list, and the Ministry of Solid Minerals should be consulted before such disruptive actions are taken,” Alake noted.
The Minister reiterated that the Federal Government remains committed to driving productive activities across the country to boost economic growth, create jobs, and promote community development.
He stressed that halting industrial operations would be detrimental, not only to the economy but to workers who rely on these jobs for survival.
Alake appealed to both the Osun State Government, led by Governor Senator Ademola Adeleke, and Thor Explorations Limited to embrace dialogue and ensure that operations continue during the investigation to avoid harming workers and their dependents.
“We must remember that the livelihoods of workers and their families are at stake. I urge both parties to cooperate with the fact-finding team and maintain industrial harmony in the interest of all involved,” the Minister added.
The Federal Government’s intervention is expected to prevent further disruptions and preserve the integrity of Nigeria’s burgeoning solid minerals sector, which has been positioned as a key driver of economic diversification.
