Globe Metals and Mining has given 203 households affected by its niobium mining project in Kanyika, Mzimba, three months to relocate after paying K2.42 billion in compensation. The compensation covers land, structures, businesses, trees, plants, and moving and disturbance allowances. This move follows the withdrawal of a High Court case involving 243 community members on September 14.
The compensation assessment revealed that trees and plants received the largest share at K1.06 billion, followed by structures at K633.7 million and land at K466.1 million. Businesses were allocated K12.5 million. Payments were made directly to the affected people's bank accounts. A three-month relocation, harvest, and moving period has been set, during which the government and local chiefs have confirmed that Globe Metals and Mining can access and use the compensated land.
The company has also set aside K59.2 million for community assets, including a church, boreholes, taps, a shallow well, and a playground. Graves and cultural heritage sites are being handled separately, bringing the Phase One total to K3.09 billion. Globe Metals and Mining interim chief executive officer Charles Altshuler stated that each household had verified assets and compensation. The company will continue working with stakeholders throughout the resettlement process.
However, some affected residents are concerned that the three-month relocation period is inadequate, particularly with the farming season approaching. Wels Nkhoma, one of the affected residents, said the community had requested more time but was unsuccessful. The community had a meeting where they asked for an extension, but the company refused, leaving them with a deadline of December 31 to look for land, construct, and settle.
Mzuzu Diocese Catholic Commission for Justice and Peace coordinator Felix Manda stated that the initial plan and agreement between the affected people and the company was that mining operations would only start when the affected community members had relocated elsewhere. Church and Society programs manager Mining Governance Project, Paul Mvula, mentioned that the company had earlier promised a 12-month relocation notice.
In response to concerns, Globe Metals and Mining managing director Lusungu Chirwa said the affected households opted to receive cash compensation rather than have houses constructed for them in the designated resettlement area. This decision led to the current three-month relocation period. The company is positioning the Kanyika Niobium Project as a critical supplier, given the constrained global supply of niobium and rising demand in various industries.
The Kanyika Niobium Project is expected to play a significant role in meeting the global demand for niobium, which is used in aerospace, defense, batteries, and advanced manufacturing. With over 90 percent of the global supply currently sourced from a single Brazilian producer, the project is poised to become a critical supplier in the industry. The company aims to continue working with stakeholders to ensure a smooth resettlement process for the affected households.
Key points
- Globe Metals and Mining pays K2.42 billion in compensation to 203 households affected by its niobium mining project in Kanyika, Mzimba.
- The company gives the households three months to relocate, despite concerns that the period is inadequate, particularly with the farming season approaching.
