The state government noted that it was monitoring the activities of the Segilola Gold Company while raising concerns on environmental hazards by it.
A few months after the Nigerian Government through the Minister of Solid Minerals Development, Dele Alake, praised Segilola Gold Mining Company, asking mining companies to emulate the models used by the company, Osun State government accused it of environmental degradation and tax evasion.
This was communicated in a statement signed by Wale Bolorunduro, a consultant to the Osun mining office, and sent to SaharaReporters on Friday.
The statement is titled, ‘Infractions Bothering on Employees’ Taxes & Payment of Accrued Financial Considerations on Shareholding by Thor Explorations Ltd of UK (Thor) and its Subsidiaries.’
The Thor exploration owns Segilola Resources Operating Limited (SRIOL or Segilola) & Segilola Gold Limited (SGL), operators of Segilola Gold Project (SGP).
The state government noted that it was monitoring the activities of the Segilola Gold Company while raising concerns on environmental hazards by it.
It said, “As a responsible government we shall continue to monitor the environmental impacts of Segilola exploration, drilling, developmental and mining activities because Environment is under the concurrence list of the Constitution of the Federal Republic of Nigeria (FRN).
“We will allow the Federal agencies to monitor this in line with its guidelines, while we expect Segilola Gold Project Operators to comply with the Osun state protocol on environmental impacts also.
“We have concerns in the area of high level of particulates in the air, possible acid drains from the waste rocks, etc. We have claims on environmental levy and we will soon publish our inspectorate report, once access is granted to the site.
“The Government of Osun State has no choice than to inform the Osun public about our findings on the Thor Explorations UK and its Segilola Gold Project operated by Segilola Resources Operating Limited (SROL or Segilola). SROL is a company, domiciled in Nigeria, that operates the Segilola Gold Project (SGP), located in Iperindo, Osun State Nigeria.”
The government also accused the company of non-remittance of taxes it deducts from employees running into N3.2 billion.
It said, “It is appalling to discover non remittances of taxes deducted as PAYE taxes from its employees and that of the employees of its service providers/ operators, under the Personal Income Tax (PITA) and non-compliance with the disclosure requirements under the extant law on taxation.
“The infractions, which cannot be tolerated for Thor, SROL and other associates in other jurisdictions are being perpetrated here, in Osun state. These include failure of Segilola Resources Operating Limited (SROl) to remit, the balance on the 3.2 Billion Naira tax liability of the four (4) year (2019 - 2023 ) Interim assessment due to the State since 4th of July 2024 under the relevant tax law of the federation and that of the state as Pay as You Earn (PAYE) and the Withholding taxes (individuals) deductions, required to be remitted to the state(s) or federal under Personal Income Tax (PITA) and Company Income Tax (CITA).”
Other subsidiaries were also accused of tax evasion.
It said, “While Sinic Engineering Ltd has been evasive, ATF Consulting Limited has failed to pay fully the 160 million Naira, undisputed interim tax liability Demanded by Osun state but rather paid partially 100 million Naira and abandoned the outstanding since August 26th,2024. The company, ATF has refused to pay for Business Premises levy, claiming they operate within Segilola’s premises.
“The progressive assessment established against the company, ATF has increased the tax liability to 436 million Naira as tax intel trickles in. Other operators such as Monurent Nigeria Limited, Deep Rock Drilling Services and CEFO Security Limited are yet to present themselves to Osun state tax authority and we cannot find their records of self assessment as requested by the tax laws. These are clear violations of section 64 of CITA on the premises of Segilola Gold Project, operated by Segilola Resources Operating Limited (SROL) and a subsidiary of Thor Explorations UK.”
The government accused the organisation of intentionally evading tax payments, saying, ““Also, it is unfortunate that Thor Explorations Ltd of United Kingdom listed on London and Toronto Stock Exchanges will allow its subsidiaries and associates on Segilola Gold Project to embark on an unholy structuring of their payroll, commercial activities without full disclosures of all operators, allegedly to evade the tax payments due to Osun state.
“We are alarmed that what cannot be condoned in other jurisdictions is being carried out by Thor Explorations, U.K and its operatives in Osun state.
“The various extant laws on taxes gives statutory power to states to collect taxes and levies on employees’ salaries and certain commercial activities without prejudice to The Minerals and Mining Act.
“Therefore, Osun state will do whatever is legal, no matter how temporary, it is to fulfill the statutory obligation of the government to Osun state citizens. We don’t want them out of Osun state but they must fulfill their obligations and responsibilities to Osun state.
“In the same vein, but purely commercial, It was Segilola Resources Operating Limited that carried out strategic annihilation of Osun State’s interest in the ownership of the Tropical Mines Limited (TML) in 2016 and the eventual Commercial transaction of Transformational Acquisition by Thor Explorations Limited (Thor) UK, without due financial considerations to Osun State.
“While other legacy co-shareholders of Tropical Mines Ltd got financial considerations for the Commercial Transaction, which includes Shares in Thor Explorations Ltd UK and other financial considerations; Osun state got nothing, based on our review of the transaction, which commenced in early 2023.
“For the past twenty months, the company, Segilola has refused to honour its commitment to commence payments on the accrued financial considerations due to Osun state on the Transformational acquisition of Osun interest between 2016 and 2019. Even, when a tenor repayment plan payable over two years was offered by Osun state Governor to them to preserve the need to encourage the national and the state investment drives in the mining sector.
“The efforts and demand of Osun state to realize our claims, which is over 60 billion Naira in monetary value and Redeemable shares as financial considerations for acquiring Osun state’s interest in Tropical Mines Ltd have always been rebuffed by Segilola Operating Resources Ltd.”
Accusing the company of misrepresenting the Osun State government to the federal government, the statement said, “At least four (4) meeting had been held with the Executive Governor, H.E Governor Adeleke and the CEO of SROL, Mr Segun Lawson in attendance and with promises made to commence payment. Only for the company to renege on its Promises and chose to go and misrepresent the state in Abuja, Ministry of Solid Minerals.”
In April, President Bola Tinubu’s administration through the Minister of Solid Minerals Development, Alake, commended Segilola Resources Operating Limited (SROL) for having 95 per cent of Nigerians as its workforce.
Alake made the commendation during a site tour of the SROL in Ilesha, Osun State.
According to a statement signed by the Special Assistant on Media to the Minister, Segun Tomori, Alake commended the company for the methods it deployed to push through with its vision, despite daunting challenges at inception.
He expressed satisfaction that over 95 per cent of staff strength in Segilola gold project are Nigerians, and urged other operators to emulate them.
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