Governor Adeleke says none of the mining companies operating in the state for the past 25 years has paid any dividends to the state.
Governor Ademola Adeleke has ordered mining companies operating in Osun State under the licence of the state government to suspend their activities immediately.
A statement issued by Mr Adeleke’s spokesperson, Rasheed Olawale, in Osogbo on Wednesday announced the development.
The statement said the directive was to enable the government to review the Memorandum of Understanding entered into with the mining firms by the previous administration of former Governor Gboyega Oyetola.
“In furtherance of his bid to reform the state’s Solid Mineral Sector, Governor Ademola Adeleke has directed immediate suspension of all mining firms operating the state’s mining licenses,” Mr Olawale said.
He stressed that the suspension will be till further notice.
“The suspension of the operators is to remain in force until the conclusion of the ongoing review of the MOU between the state as the owner of the licenses and the operators.”
He also ordered owners of the mining companies to present copies of the MoU given to them by the previous administration.
“All operators are to report to the Committee on Assets Verification and Recovery chaired by Dr B.T Salami with copies of their Memorandum of Understanding which governs their relationship with the state government,” he added.
All operators are to report to the committee on Monday by 12 p.m.”
The governor had earlier said on Monday that all companies mining gold in the state will henceforth pay 13 per cent of their profit into the state coffers.
He said for the past 25 years, records showed that none of the mining companies in the state paid their dividends to the state.
The governor vowed to ensure all mining production companies in the state pay the state its entitlements.