* Company presents records of investment agreements, mining exploration activities and 300MW power project,
* Calls for fairness, accuracy and due process
Energy and Metals Industries Limited (EMI) has rejected allegations of fraud against its Co-Founder, Chief Dr. Innocent Ozoemena Ezuma, describing media reports linking him to the alleged diversion of approximately US$120 million belonging to foreign investors as misleading and lacking the necessary commercial, contractual and regulatory evidence.
This is contained in a statement issued by the company management in Abuja on Friday.
According to the statement, the company’s relationship with the foreign investment partners was established through formal investment and corporate agreements for the development of mining, energy and industrial projects in Nigeria, rather than a personal financial transaction.
EMI disclosed that the business relationship dates back to a Memorandum of Understanding (MoU) executed on March 23, 2008, in Kyiv, Ukraine, which provided for the establishment and development of the company, with a proposed investment portfolio of up to US$1.5 billion. Approximately 20 per cent of the proposed investment was to be provided by the foreign investor through interest-free credits, while the balance was expected to be sourced from independent financial institutions.
The arrangement was subsequently complemented by a Corporate Agreement dated January 30, 2013, covering the development of a coal-fired power generation project at Itobe, Kogi State.
Documented Mining and Power Project Milestones
The company disputed suggestions that the mining and power projects were never implemented or that no substantial development activities took place despite the investment relationship.
According to EMI, the Federal Ministry of Mines and Steel Development, now the Ministry of Solid Minerals Development, granted reconnaissance permits, exploration licences and mining leases for copper, gold, lead and zinc. The 25-year mining lease became effective on September 10, 2014, and remains valid until September 9, 2039.
The company disclosed that exploration activities in Kogi State included 57 boreholes covering 6,025 metres, 11 trenches covering 970 metres and 78 test pits, alongside geological mapping and geophysical surveys. In Zamfara State, activities included geological mapping, 385 soil geochemical samples, geophysical surveys, trench investigations and shallow prospecting, with a preliminary inferred gold resource estimate.
EMI further stated that the exploration programmes underwent technical reviews by SRK Exploration Services of the United Kingdom and CSA Global of Australia, including assessments of sampling procedures and quality assurance protocols.
On the power development component, Itobe-1 Coal Power Limited obtained a Nigerian Electricity Regulatory Commission (NERC) licence for a 300MW on-grid coal-fired power generation project. The licence became effective in December 2014 and was subsequently renewed until September 29, 2031.
The company maintained that these regulatory approvals, exploration activities and technical assessments demonstrated that the projects progressed beyond the conceptual stage, although further drilling, metallurgical testing, environmental assessments and full feasibility studies were identified as necessary steps towards final investment decisions.
EMI Disputes Fund Diversion Allegations and Clarifies Jos Steel Mill Acquisition
Addressing allegations of investment fund diversion to companies and individuals allegedly associated with Dr. Ezuma, including members of his family, EMI rejected attempts to present such claims as established facts without a comprehensive examination of the transactions, their commercial purposes and supporting financial records.
The company maintained that business or family associations do not, in themselves, constitute evidence of financial misconduct and said it remained prepared to provide relevant corporate, investment and project documentation through appropriate lawful processes.
On references to the defunct Jos Steel Rolling Company, EMI clarified that its transaction team led the acquisition of the company’s assets in 2005, three years before the foreign investment arrangement was formalised in 2008. Zuma Steel West Africa Limited acquired the assets following a court-supervised liquidation process guided by the Bureau of Public Enterprises (BPE).
The company also highlighted persistent electricity supply challenges in Nigeria, noting their impact on mining, mineral processing, steel production and other energy-intensive industrial operations.
Commercial Dispute Already Before the Courts
EMI disclosed that the commercial relationship had resulted in ongoing judicial proceedings, including LCIA Arbitration No. 194203, Tooley Property Company Limited v. Energy and Metals Industries Limited, one of five arbitral awards dated January 17, 2020.
The company stated that the Zuma companies had been challenging the five awards before the High Court of the Federal Capital Territory, Abuja, since March 2020, in Suit No. FCT/HC/CV/001/2020, on grounds including alleged illegality, misconduct and lack of jurisdiction.
It also identified separate enforcement proceedings in Suit Nos. FCT/HC/CV/1811 to 1815/2022, seeking recognition and enforcement of the awards, including the award involving EMI, which the company and its associates have opposed.
EMI stressed that a commercial dispute, an arbitral award and allegations of criminal wrongdoing are distinct legal matters and should not be conflated. It stated that it would allow the courts to determine the issues properly brought before them rather than litigating the matter through the media.
Company Affirms Cooperation with EFCC Investigation
On the reported EFCC investigation, EMI acknowledged the Commission’s statutory responsibility to investigate allegations of financial and economic crimes, stating that Dr. Ezuma remained willing to cooperate with lawful requests from the relevant authorities.
However, the company emphasised that allegations under investigation should not be presented as established findings of guilt, noting that Dr. Ezuma had not been convicted of any offence in connection with the allegations.
It invoked the presumption of innocence guaranteed under Section 36(5) of the Constitution of the Federal Republic of Nigeria and called for respect for due process.
EMI Calls for Responsible Media Reporting
The company urged media organisations to distinguish allegations from facts established by a court of competent jurisdiction, consider the executed investment agreements and documented project milestones, acknowledge the ongoing judicial proceedings and provide affected parties with a fair opportunity to respond.
It also appealed to members of the public to exercise restraint and avoid drawing premature conclusions from reports containing allegations yet to be fully examined through appropriate legal processes.
EMI warned that the widespread publication of unverified or materially misleading claims could cause lasting reputational damage to the company, its leadership, employees, business partners and other stakeholders. It reserved all rights and remedies available under Nigerian law in respect of publications found to contain false, defamatory or materially misleading assertions.
Reaffirming its position, the company maintained that the documentary records underpinning the investment relationship, including executed agreements, mining leases, exploration reports, technical assessments and the 300MW power generation licence, should form an important part of any objective assessment of the matter.
The company in the statement, reiterated its commitment to protecting its corporate interests, cooperating with lawful investigations and respecting the judicial process, stressing that a commercial disagreement should not automatically be equated with criminal wrongdoing and that the facts and documentary evidence should ultimately determine the outcome.