Mining: State Closing Sites Over Tax Disputes
Some state governments have been closing some mining operations over disputed tax obligations, the Minister of State for Mines and Steel Development, Mr Bawa Bwari, has said.
Bwari said this in a keynote address delivered at the Second National Council on Mining and Mineral Resources Development in Kaduna, which was made available to our correspondent in Abuja on Thursday.
Although he did not give details, the minister stated that the controversial Ajaokuta Steel Complex would soon begin operation.
Bwari said his ministry had been receiving petitions that some state governments had been closing down mining operations over issues of double taxation, and urged them to stop interfering with the business of the operators.
He stated, “In the last one year, the ministry has been inundated with petitions and complaints of state ministries and agencies closing mining operations for non-payment of fees that are generally considered as double taxation.
“This not only goes against the mining laws and the constitution, it also has a tendency to scare away investors and give wrong signals about our country’s mining environment.”
Bwari added, “In the spirit of cooperation that is at the root of this National Council, may I request that these practices be stopped in the interest of the growth and development of the sector.
“In the same vein, I want to call on all operators to ensure the transfer of social and economic benefits to their host communities through Community Development Agreements in line with the provisions of the Nigerian Minerals and Mining Act, 2007 and its pursuant regulations.”
Regarding Ajaokuta, the minister said, “On Ajaokuta Steel Complex, we are finally on the verge of resolving the thorny issues around this legacy project and I believe that the place will become fully operational soon.
“Concerning, ALSCON (Aluminium Smelter Company of Nigeria in Ikot Abasi), we have held meetings with the necessary stakeholders, including UC Rusal, to ensure adequate supply of gas to the company and to ensure maximum efficiency.”
Bwari added that the Federal Government had shown its commitment to the mining sector through increased funding.
