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Dangote BUA rivalry

Dangote, BUA mine crisis lingers as FG orders BUA to vacate disputed site

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Federal Government has directed the Management of BUA Group to vacate and stop mining activities in the disputed location within Mining Lease No 2541ML.

The order, which was exclusively made available to Business Hilights weekend, was conveyed in a letter from the Federal Ministry of Mines and Steel Development with Reference number: MMSD/MID/OP/RS.71/1/ and addressed to BUA’s Chairman and Chief Executive Officer.

The letter revealed that the outcome of the FG’s investigation confirms that BUA is indeed engaging in illegal mining of marble/limestone at the site and that “clarification provided by the Mining Cadastre Office (MCO) shows that the coordinates of the Mine pit and ROM stockpile area fall wholly within the area of Mining Lease No.2541ML belonging to Messrs Dangote Industries Limited”

The letter further averred in parts: “The investigation further confirms that your company is carrying out the mining activities at the locality without any valid mining lease granted by this Ministry under the watch of armed military officers and men of the Nigerian Security and Civil Defence Corps (NSCDC).”

Recalling that a similar letter of such had earlier been written to the company in December 2015 with reference number: MMSD/MID/OP/754/1 without compliance, the Ministry insisted that the stop order now issued must be obeyed.

“Consequently upon the foregoing therefore, your company is hereby ordered to immediately stop all mining activities at the identified spot and any other part of the area of the 2541ML, evacuate all your mining machineries/equipment and vacate the mine site. This order is issued in accordance with the provisions of section 146(4) of the Act.

It would be recalled that the Management of Dangote Group recently accused BUA of engaging in illegal mining of limestone deposited in its Mining Lease No. 2541.

Dangote’s Executive Director, Mr. Devakumar Edwin, who then addressed the Press frowned at the media war, instigated by BUA against the Dangote Group, over a matter which is already pending before the Federal High Court, Benin Division

Edwin revealed that: “Dangote Group validly acquired its interest and mining title in the disputed Mining Lease No. 2541 from AICO Ado Ibrahim & Company Ltd sometime in 2014. AICO itself had applied to the Mining Cadastre Office and Ministry of Mines and Steel Development for the said Mining Lease No. 2541 located in a boundary town of Oguda/Ubo in Okene Kogi State in 2007. The Ministry in exercise of its power under the Nigerian Minerals and Mining Act, 2007 granted and issued to AICO ML. No. 2541 for the renewable period of 25 years effective from 1st February 2008 and to expire on 31 January, 2033. Thus AICO by virtue of the said grant, became vested with the legal title over ML. No. 2541. In 2014, the Dangote Group approached AICO and indicated interest in acquiring AICO’s stake in ML No. 2541. In 2014, AICO in exercise of its right under the Mining Act, applied to the Ministry for the transfer of its title in the ML No. 2541 to Dangote Group. AICO and Dangote Group equally paid all the transfer and statutory fees demanded by the Ministry.”

He further explained that:” By a letter dated 05 February 2016, the Ministry wrote to the Managing Director of the Dangote Group to convey the approval of the Ministry for the Transfer/Assignment of ML No. 2541 from AICO to Dangote Group with effect from 03 February 2016. Following the successful transfer of ML NO. 2541 to Dangote Group, the Group became the holder of the Mining Lease No. 2541.”

Edwin said: “It is therefore appalling that BUA Group in the midst of these overwhelming facts is still accusing us of waging a campaign of calumny against its company… The Chairman of BUA, Samad Rabiu is simply a lachrymose- a man who sheds pretentious tears like crocodile. This action of his is most laughable and a total distraction from BUA’s continuous illegal activities within Dangote’s ML 2541 aimed at depleting and exhausting the limestone reserves in order to sabotage Dangote Group’s legitimate investment.”

He said even BUA in its process in Court acknowledged that these illegal mining leases which it claimed were granted in 1997 were temporary mining leases.

Edwin also recalled that the then Minister for Solid Minerals under Olusegun Obasanjo’s regime, Dr Oby Ezekwesili sometime in 2006 waded into the dispute and invited the managements of Edo Cement Company Limited and AICO Ado Ibrahim & Company Limited for a meeting and that in the course of the meeting the then Minister again queried the legality of Mining Lease Nos 18912 and 18913 and the power of the Governor of Edo State to grant such mining leases.

“At the end of the Meeting, the Minister declared the Edo Cement’s Mining Leases Nos. 18912 and 18913 illegal and declared the mining site open for interested investors. Given that AICO’s then existing Mining Lease No. 17825 was yet to be renewed even though application for renewal was pending, AICO in 2007 (under the Mining Act, 2007) applied for the fresh Mining Lease No. 2541 and the Ministry granted it in 2008 without any objection from Edo Cement Company” Edwin said AICO, who sold the right to Dangote, continued its mining operations in the Mining Lease No. 2541 undisturbed until BUA Group acquired Edo Cement Company Limited and resuscitated the dispute again.

Edwin further revealed that it was the attempt by BUA to encroach on AICO’s mining title in Mining Lease No. 2541 that prompted AICO to write to the Ministry in 2015 complaining of BUA’s encroachment.

He said: “The Ministry after investigation in the same 2015 by the letter dated 21 January 2015 wrote to the Chairman of BUA Group directing BUA to stop mining within the ML. No. 2541. It was this same letter from the Ministry that prompted BUA to file a Suit at the Federal High Court Benin in 2016.”

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