Collaboration between state governments and mining operations will boast national development – Alake

Minister of Solid Minerals Development, Dr. Dele Alake has stressed the need for a harmonious relationship between state governments and mining operators to attract investment and boost the nation’s mining sector.

Dr. Alake stated this during a mediation parley with Osun State Governor, Ademola Adeleke, and representatives from Segilola Resources Operating Limited, SROL, his office in Abuja.

The Minister who emphasized that solid minerals play a central role in the federal government’s economic diversification agenda noted that efforts in this regard would be jeopardized in a sector riddled with conflicting policies and strained relations between operators and state governments.

“In a business environment with multiplicity of regulatory authorities, foreign investors are discouraged” Alake noted.

Dr. Alake who called for an amicable resolution of the dispute between Osun State and SROL, emphazied that the state stands to benefit from an environment that promotes industrial harmony, eases the business climate that would lead to increased revenue and attract foreign direct investment (FDI).

“Investors prefer countries where regulations are clear, streamlined and consistent. It is trite to emphasize that solid minerals belong exclusively in the federal government’s purview but when sub national governments issue conflicting directives, it deters the critical investments needed to grow the mining sector” the Minister added.

On his part, the Osun state Governor, Ademola Adeleke who appreciated the minister’s intervention, expressed the state’s commitment to improving the ease of doing business while ensuring that ethical standards are upheld.

Gov Adeleke reiterated readiness to reach a compromise with the company to ensure smooth mining operations in the state.

In his presentation, the Special Adviser to the Governor on Mining and Mineral Resources, Prof. Lukman Jimoda, Special outlined the key issues at the heart of the dispute, to include disputed tax claims (particularly Pay As You Earn, PAYE), the state’s shareholding in the company, environmental concerns, and the broader economic interests Osun should gain from Segilola’s operations.

Highlights of the meeting was the presentation of the state’s shareholding certificate to Governor Adeleke by Segilola Resources Limited.

The meeting was attended by Governor Adeleke, Prof. Jimoda; Special Adviser to the Governor on Media and Publicity, Olawale Rasheed, and other government officials. Segilola was represented by MD/CEO, Segun Lawson; Country Director, Austin Menegbo; Non-Executive Directors Folorunsho Adeoye and Kayode Aderinokun.