BUA accuses Dangote of outmuscling competition as Edo gov shuts down disputed mines

As the ‘war’ between the corporate giants over the rights to a disputed mining site in Edo State continues, the management of BUA Group has accused Dangote Plc of being in the habit of doing everything possible to outmuscle competition.

This is coming as the Edo State Governor, Godwin Obaseki, citing security concerns arising from the proclamation by the Federal Ministry of mines that illegal mining activities are being carried out at the contentious Obu mines in Okpella, Edo state, on Monday, ordered that the mines be shut down until further notice.

The governor said the decision was taken in the interest of peace and tranquility, pointing out that flouting of his order will be met with wrath of the state government.

Consequently, the governor directed the state police Commissioner and the Army Brigade Commander in the state to halt further operations at the Obu mines with immediate effect.

BUA also described the recent claim by the Dangote Plc that BUA was engaging in illegal mining activities in Okene, Kogi State, as false.

BUA went further to say that it had no operation in Kogi, where the Dangote group claimed it was engaging in illegal mining.

Dangote’s Executive Director, Mr. Devakumar Edwin, had accused BUA of engaging in illegal mining of limestone deposited in Dangote’s Mining Lease No. 2541 located in a boundary town of Oguda/Ubo in Okene, Kogi State.

“Dangote Group validly acquired its interest and mining title in the disputed Mining Lease No. 2541 from AICO Ado Ibrahim & Company Limited 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,” Edwin had claimed at a media briefing.

But BUA Group Head of Corporate Communication, Mr. Otega Ogra, in his response in a statement on Monday denied that the group has any operations in Okene, Kogi State where the purported ML2541 is located.

“Our attention has once again been drawn to a new statement by the Management of Dangote Group which is being syndicated to various news publications related to the ownership and operations of BUA’s mining sites in Obu, Okpella, Edo State.

“Our Mining operations are limited to Obu-Okpella, Edo State for which licenses ML18912 and 18913 were issued and revalidate by the same ministry in a publication.

“We thus wish to reiterate once again that whilst we do not want to join issues with anyone on this matter as it is currently before a court of competent jurisdiction, we are however compelled to use the opportunity presented by Edwin Devakumar’s reckless statements to clarify the cycle of misinformation being proliferated.

“The antecedents of Dangote Plc in trying to outmuscle competition are not in doubt. Various cases abound within and outside the cement industry – one of which was their taking over of the limestone deposits of another competing entity in the south-south region of Nigeria until they ceded him 25 percent of their company. This was in turn resold to them for hundreds of millions of dollars. Or is it the case of Ibeto whose business was almost driven under but for the prompt intervention of the then late President Umaru Musa Yar’Adua. Or is it the case of Polo House Jetty Tincan previously owned by his uncle, Usman Dantata, who’s License was revoked by NPA and reallocated to Dangote on the same day in order to prevent a sugar refinery to be sited there by a competitor.

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“We also wish to ask, why is Dangote, an international company which is also listed on the Nigerian Stock Exchange, so averse to letting the rule of the law and judicial process take its course? The court has maintained that Status Quo be maintained (This includes BUA’s current ownership of our mines in Edo State) but the management of Dangote Group, as has been their strategy in the past to other companies in competition with them, is still seeking to out-muscle competition through backdoor means rather than let the court decide. If anyone is not satisfied, they should write to the courts as an independent arbiter for an interpretation of ‘maintaining status quo’ rather than spread misinformation in the court of public opinion,” Ogra said.

Explaining that the license had been owned, operated and fulfilled by BUA Group and its predecessors-in-title since 1976, Ogra added, “It is also a notorious fact that we have exercised total control and possession over the mining area covered by the above mining leases since 1976 when we operated under the name of Bendel Cement Company Limited.

”We are thus wont to excuse Edwin’s claims to a lack of basic knowledge and understanding of the geography of Nigeria but he will be better served if he seeks professional opinion in critically understanding the geography of Nigeria or he should otherwise refer to documents from the boundary commission which clearly delineates boundaries within Nigeria”, the BUA statement said.

Meanwhile Governor Obaseki who announced the close of the disputed mines described Okpella as the mineral gem of Edo state and as such mineral resources ought to be a blessing to the people of the state “but regrettably, the situation on ground has degenerated to a security threat and therefore there is the need to nip it in the bud”.

He made the announcement while receiving in his office Community heads and Chiefs of Ukhomunyio Okpella, whose community is hosting the disputed mines and had come to express reservation at the alleged use of youths as militia to enforce perceived rights to ownership of the mines and thus creating security threat to the peace of the people.

The governor

Obaseki said, “The Federal Ministry of Mines which has authority over the mines has proclaimed that what we have there now is illegal mining and we don’t want break down of law and order. The situation has degenerated badly.

“Those of you concerned have moved and tried to resolve the matter, we lost two of the people on the road to Benin while on the trouble shooting mission to Benin. We had a meeting in Abuja two weeks ago and we analysed the Obu mines issue.

“Two people cant lay claim to one asset, until the court decides the ownership or the federal supervising agency, the Ministry of Mines says otherwise, I am closing down that Obu mines with immediate effect, because we believe there is globally acceptable way of determining ownership in a contentious matter as this without recourse to self help”.

The governor noted that mines is on the exclusive list of the federal government and the ministry said there is illegal mining going on there, “from today there will be no further mining operations in Obu”.

Earlier, spokesman of the Okpella Chiefs, Chief Moshood Aliu told the governor that the youths of the Community are being incited against one another in a bid to enforce perceived right to ownership of the mines, a situation he said generated tension in the area.

Chief Moshood explained that while the location of the mines is not in dispute, what is being disputed is the ownership.

“Obu mines was in the then Mid West, later Bendel and now Edo state. We are the occupier of the area and we don’t want trouble, the unilateralism and use of youths as militia to enforce ownership right is condemnable”, he stated.

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