The Osun State Government has disclosed that it has secured shareholding certification and a tax exchange agreement with Thor Explorations Limited, the owner of Segilola Resources Operating Limited (SROL), a gold mining site, following the federal government’s mediation.
This was disclosed in a statement by Mallam Olawale Rasheed, Spokesperson for the State Governor, Ademola Adeleke, on Tuesday.
The development occurred during a mediation meeting between the governor and representatives from Segilola Resources Operating Limited (SROL), facilitated by the Minister of Solid Minerals Development, Dr. Dele Alake.
Nairametrics previously reported that the Federal Ministry of Solid Minerals Development had, on October 5, 2024, cautioned the Osun State Government against jeopardizing the Federal Government’s efforts to attract Foreign Direct Investments by closing down a mining site.
Alake was reacting to claims and counterclaims between the Osun State Government and Thor Explorations Limited, the owner of Segilola Resources Operating Limited (SROL), regarding alleged taxation and operational issues.
What Transpired
On September 30, 2024, the Osun State Government reportedly sealed the business premises of SROL, insisting that a court had ordered the state to confiscate the company for “flagrant tax violations” and other operational matters.
- The state government had charged the company with unethical business practices and tax evasion amounting to about 1.9 million US dollars.
- As noted on the company’s website, it operates a gold project located in Osun State, Nigeria.
- The Segilola Gold Mine has reportedly completed two full years of production, with a total gold production of 98,006 ounces in 2022 and 84,609 ounces in the 2023 calendar year, and is targeting 95,000-100,000 ounces of gold in the 2024 calendar year.
Alake vowed to address the dispute and restore industrial harmony by setting up a fact-finding team to make the state government understand that mining falls under the exclusive legislative list, and that the Ministry of Solid Minerals should be consulted before any disruptive actions by any state are taken against an investor.
Resolutions Reached
According to the state government, the parties agreed to jointly work together to address four major areas of disagreement raised by the Osun State Government against Thor Explorations Limited, including the resolution of Osun’s shareholding in the Segilola Mining company, tax payments by the firm, environmental degradation, and disputed mining fields, among others.
- The governor clarified that the state government did not just wake up one day to challenge Thor Explorations Limited, expressing happiness that the intervention of the Ministry has produced positive results.
“After a closed tripartite meeting, resolutions were reached on the handing over of the state shareholding to the Governor and the agreement to exchange data on tax claims, environmental damages, and claims on mining fields.”
“The major highlight of the meeting was the presentation of the Osun shareholding certificate to Governor Adeleke,” the state government added.
More Insights
- Confirming the mediation via his X page on Tuesday, Alake stressed that a cooperative atmosphere fosters industrial harmony and enhances the business climate, ultimately driving revenue growth and attracting foreign direct investment.
- He expressed pleasure that, after discussions, both sides are committed to ongoing dialogue to address any remaining issues.
- He assured that the federal government remains committed to cultivating a favorable investment climate that will foster growth and development for all parties involved.