The Federal Ministry of Mines’ engagement in Osun State’s tax disputes with Thors Explorations Limited has been welcomed by Governor Ademola Adeleke, who has clarified that the state has supported its claims within the framework of the Constitution and current legislation.

The governor of Osun’s spokesperson, Olawale Rasheed, announced this position on Sunday in Osogbo.

According to the statement, Governor Adeleke had already contacted Dele Alake, the Minister of Mines, and informed him that the state was in favour of any initiatives aimed at encouraging foreign direct investment into Nigeria.

Nonetheless, Governor Adeleke emphasised that investors also needed to follow local rules, be honest, and prevent environmental destruction.

Adeleke stated, “Segilola Resources Operating Limited has accumulated tax liabilities of N3.25 billion with a demand notice issued in April 2024,” clarifying that the state government has initiated talks and negotiations with Thors Exploration since 2023 without any fruitful outcomes.

Adeleke stated, “Segilola Resources Operating Limited has accumulated tax liabilities of N3.25 billion with a demand notice issued in April 2024,” clarifying that the state government has initiated talks and negotiations with Thors Exploration since 2023 without any fruitful outcomes.

In addition to stating that Osun is legally entitled to collect taxes owed, the governor pointed out that Thors Explorations was running six other businesses on the property “without disclosure to the state government for tax and environmental accountability purposes.”

He mentioned SINIC Engineering Limited, Monument Nigeria Limited, ATF Consulting Limited, Rabaa Cleaning Limited, Deep Rock Drilling Services, and CEFO Security Limited among the businesses.

“Thor Exploration Limited confirmed that Osun has five million, one hundred and ninety-two thousand, eight hundred and ninety-six units of shares of Thor Exploration, United Kingdom,” the governor continued in his submission.

He emphasised that as a stakeholder, Osun has a right to get the financial consequences up to this point.

“The company has a duty to pay for environmental reclamation even as the environment is on the concurrent legislative list,” Governor Adeleke remarked, bemoaning the enormous environmental degradation caused by Thors’ mining activities in Osun State.

Osun State and the Federal Ministry of Mines have a strong working relationship. There are various mining permits in our jurisdiction. We therefore have a thorough awareness of the laws and the constitution and are important stakeholders. Our goal is to obtain what is rightfully our state, as confirmed by current laws and customs.

We have multiple investors in different areas of our state’s economy and a strong business-friendly climate. All that we are against is a lack of accountability and transparency in the way the mining industry operates. As is customary in North America and Europe, local regulations must be observed and followed, and the environment must be restored.

Thus, we eagerly await the arrival of the government fact-finding team. Our position is ready. Thors cannot use the mining exemption from municipal taxes, the exclusive legislative list to deny shareholders their rights, or the law to harm our environment without consequence.

Following the closure of a gold mining site in the state, the Federal Ministry of Solid Minerals Development issued a warning against taking any actions that could jeopardise foreign investment during the heated dispute between the Osun State Government and Thors Explorations Limited.

The warning was issued when Segilola Resources Operating Limited, or SROL, had its facilities sealed by the Osun government, which claimed the company had engaged in unethical and tax-evading activities.

Dele Alake, the Minister of Solid Minerals Development, had voiced worries about how the closure will affect Nigeria’s attempts to draw in foreign direct investment for its mining industry.