BUA Group has accepted a ceasefiire with the Dangote Group over the Obu mine located in Okpella, Edo state. The company has been engaged in a war of words with the Dangote Group and Ministry of Mines and Mineral Development. The Federal Government has since ordered a shut down of the mine.
Despite this, the company has insisted on operating the Obu mine, and has referred deferring parties to the courts.
“for the purpose of clarity, bua remains in possession of the mining areas covered by mining leases 18912 and 18913 in obu, okpella, edo state and will continue to exercise its rights to operate those mines in line with the dictates of the courts.
Crux of the Argument
While the BUA Group has accused the ministry of mines and Dangote cement of frustrating operations of its mine and factory, the Ministry has accused the company of failing to abide with an order to cease operations in the disputed mine. Dangote group has also accused BUA of illegally operating a mine it had paid for and using armed personnel to prevent it from taking over.
Dangote group had in a press release to the Nigerian Stock Exchange (NSE) confirmed that there were several court cases concerning the dispute.
BUA cement is a member of the BUA Group founded by Abdulsamad Rabiu. The company was originally known as Edo Cement when it was incorporated by the Edo State government and several indigenous investors. The BUA Group bought a majority stake in the company when it was privatized by the Federal Government in 2008.
The Dangote Group was established in May 1981 as a trading conglomerate with an initial focus on cement but it has since diversified into in several areas ranging from cement, sugar and flour production to the petroleum industry.