Adeleke directs mining companies to pay 13% derivation to Osun

By Deborah Oladejo, Osogbo

Osun State Governor, Ademola Adeleke on Monday directed all mining companies in the state to pay 13 percent derivation on the value of gold and other solid minerals expected to have accrued into the state coffer in the last 25 years. 

The governor also warned that henceforth, illegal mining syndicates in the state will be arrested and prosecuted. 

Inaugurating a solid minerals’ sector committee in Osogbo, Adeleke said the state has been subjected to intense environmental degradation arising from the activities of mining companies.  

He promised that his administration will not allow Osun people to continue to be exposed to polluted water.

He said: “My administration is committed to protecting Osun assets across board. Hence, I am today beaming strong searchlight on the solid minerals’ sector, especially the activities of Segilola company and other similar companies operating in our gold fields. 

“Osun State, according to extant laws, is entitled to 13 percent derivation from every ounce of gold extracted from our gold and other solid mineral fields. Segilola and other operating companies are expected by law to pay Osun state 13 percent derivation on the value of gold and other solid minerals produced in the last 25 years. 

“Till date, we have no record of any payment made by Segilola and other mining companies to Osun State. My administration is determined to recover every penny owed Osun State by companies operating in Osun gold fields.

“For the sake of emphasis, denying Osun State of its legitimate revenue through refusal to pay derivation, and polluting our environment with impunity will not continue under my watch. I was elected to protect and serve the economic interest of Osun state and that is one of my priorities.”

The governor directed mining companies to ensure a cleaner environment within their operational areas.

The mandates of the committee include, among others, the recovery of all monies due to the state from mining companies based on derivation platform and pollution cleaning fund, to take inventory of mining and quarry licences and ensure recovery of any licence already converted into private hands.

The committee is also to proffer workable solution to addressing the challenges facing the mining sector as related to polluting the environment and rivers.

The committee is expected to submit an interim report in the next two weeks.

The governor also inaugurated the revenue committee, with the aim to bring sanity into the revenue generating sector as well as to block all leakages in the revenue administration process.

Adeleke said his administration will not condone a situation whereby revenue agents are earning more than the state.

He said: “All revenue inflow must go to the coffers of the state. We must then decide what will be the collection fees to be paid the revenue agents. Consequently, all revenue agents operating on behalf of the state must report to the committee immediately for new terms of engagement.”

The governor announced the suspension ofa all logging permits such as hammer and concession permits pending review by the committee. 

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