Osun/Thor’s dispute: Gov Adeleke to secure state’s shares, asks Segilola to fulfill tax obligations

By Deborah Oladejo, Osogbo

Osun State Governor, Ademola Adeleke, has confirmed that Thor Explorations, operator of the Segilola Gold Project, has issued a written certificate validating Osun State’s 5% shareholding in the project.

Following a preliminary report from the state team led by the Special Adviser on Mining and Mineral Matters, Prof. Lukman Adekilekun Jimoda, Adeleke affirmed that mediation efforts have validated many of the state government’s demands.

In a statement signed by his spokesperson, Mallam Olawale Rasheed, Governor Adeleke said that the mediation has also led Segilola, the operator of Thor Explorations, to agree to open its accounting records for review concerning the 3.25 billion naira tax assessment by Osun State, in line with the Personal Income Tax Act, Section 58 (2).

He said, “We now have a formal confirmation of Osun’s 5% shareholding in Tropical Mines Limited’s interest in the Segilola Gold Project. I look forward to welcoming the federal mediation team for the formal presentation of the share certificate to the state government.

“However, our demand remains 5% of the gold asset’s value when acquired by Thor Explorations from other stakeholders. We also have additional economic interests through Thor’s partnership, as it took 88 cadastral units from Osun’s exploration license.

“Our decision to avoid under-the-table dealings with Thor Explorations has paid off. From the start, I made it clear that I did not want personal gain; I wanted Osun’s share to benefit the state treasury directly through proper taxation.”

“We are aware that other interest holders received cash and smelter fees during Thor’s acquisition. We insist on the immediate payment of all due funds to the state treasury, without delay,” Governor Adeleke added.

Regarding the outstanding tax liabilities of Thor Explorations, which require further documentation from the state, the Governor instructed his team to provide all necessary records, stressing that “Osun has legitimate PAYE tax claims that Thor must fulfill.”

“I commend the federal mediation team for ensuring adherence to local tax and environmental regulations. We are simply requesting that Thor comply with state laws, as it does with federal ones. Other major corporations, like MTN and Airtel, register their assets with the Corporate Affairs Commission. Similarly, the Segilola Gold Project should be registered in Nigeria.”

“We will submit our environmental inspection report to highlight that the environmental damage here requires extensive remediation and rehabilitation, and that financial resources alone cannot restore the harm caused. It’s concerning that an internationally listed mining company would attempt to evade responsibility for environmental care,” the Governor lamented.

Earlier, Prof. Jimoda presented a report on the mediation between Thor’s management and the state government, supervised by the intervention team set up by Federal Minister of Mines Development, Mr. Dele Alake.

He informed the Governor that significant progress was made, especially concerning shareholding, financial commitments, ongoing tax discussions, and a consensus on environmental remediation.

However, he noted that the meeting did not address the various legal cases related to the dispute. A follow-up meeting between the parties is scheduled to take place in Osun State soon.