The Minister of Solid Minerals Development Dr. Dele Alake has said the
indiscriminate closures of mining operations by sub-nationals raises the risk of discouraging Foreign Direct Investments, FDI, and even worse, possible divestment by existing companies.
Alake gave the warning while announcing a fact-finding committee to look into the face-off between Osun State government and Thor Explorations Limited, owners of the Segilola Resources Operating Limited over taxation and operational matters.
Disclosing this in a statement by the Special Assistant on Media to the Minister, Segun Tomori in Abuja on Saturday, Alake warned that mining operations and regulations are the exclusive rights of the federal government and not the sub-nationals.
The Minister directed the committee headed by the Permanent Secretary of the Ministry, Dr. Mary Ogbe to probe the claims and counter claims by the Osun State government and the private firm by engaging both parties towards resolving the dispute and restoring industrial harmony.
He observed 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 sub-nationals could abort efforts to attract Foreign Direct Investments (FDI) and provoke divestment.
“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,” Alake asserted.
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.
Alake 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.
The Minister then called on both parties to co-operate 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.