The Ministry of Solid Minerals Development said it is probing the claims and counter-claims of Osun State government and Thor Explorations Limited, owners of the Segilola Resources Operating Limited, over taxation and operational matters.
Segun Tomori, the special assistant on media to the Minister of Solid Minerals Development, Dele Alake, disclosed this in a statement on Friday.
On 30 September, the Osun State Government sealed up the business premises of Segilola Resources Operating Limited, following a court order permitting the state to distrain the company for alleged tax violations and failure to disclose fully the employees directly and indirectly involved in its business activities, obstruction of tax processes by failing to provide timely tax information and documents.
In its statement, Mr Alake said mining falls under the exclusive legislative list, and the Ministry of Solid Minerals should be consulted before such disruptive actions are taken.
According to the statement, Mr Alake said a fact-finding team has been set up to engage both parties towards resolving the dispute and restoring industrial harmony.
Led by Mary Ogbe, the permanent secretary of the ministry, the statement said the committee will include representatives of the Federal Inland Revenue Service (FIRS), Ministry of Labour and Employment and the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
Mr Alake emphasised that the federal government has been marketing opportunities for investments in the solid minerals sector across the world and cautioned that closure of mining operations by subnationals could abort efforts to attract Foreign Direct Investments (FDI) and provoke divestment.
“Indiscriminate closures of mining operations by subnationals 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,” Mr Alake said.
The minister reiterated the federal government’s interest in raising the tempo of productive activities nationwide to boost economic growth, increase employment and community development.
He stressed that any cessation of industrial production will undermine the goals of economic prosperity, deny workers the opportunity to earn income, and further contribute to adversity.
READ ALSO; Alleged Tax Evasion: Osun govt seals off mining firm
The minister called on both parties to cooperate with the fact-finding team and allow production to continue while the issues are resolved.
“I hereby call on His Excellency, the Governor of Osun State, Sen. Ademola Adeleke and the management of Thor Exploration 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,” he added.
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