Residents of Mufumba Village in Butare-Katojo Town Council, Uganda, have expressed concerns over inadequate compensation for their land as the government prepares for an iron ore mining project by Devki Steel Mills Limited. The concerns were raised during a land handover ceremony presided over by Prime Minister Robinah Nabbanja. The project requires the relocation of over 161 people.
The affected residents, led by local leaders, argue that the proposed compensation of between Shs3 million and Shs5 million is insufficient to acquire alternative land. They warned that inadequate compensation could leave them struggling to resettle. The leaders called for a review of the valuation process to ensure fair compensation.
In response to the concerns, Prime Minister Nabbanja directed the Ministry of Lands, Housing and Urban Development to conduct a fresh valuation exercise. The ministry will undertake a house-to-house and land-to-land assessment to individually evaluate each affected resident's property. This directive aims to address the residents' concerns and determine whether the compensation offered reflects the value of the land and properties.
The Chairperson of Devki Steel Mills Limited, Narendra Raval, assured the public that the project would bring economic benefits to the area. He urged local leaders to cooperate with the company as the project progresses. The iron ore project is expected to open the area to mining-related economic activities.
The fresh valuation exercise will be crucial in determining how the government addresses the affected residents' concerns. The reassessment could provide an opportunity for the government to review the valuations and clarify the compensation process before relocation. This process will help establish a fair compensation structure for the affected residents.
The concerns raised by residents have placed compensation and resettlement at the centre of discussions surrounding the project's implementation. Local leaders, including Butare-Katojo Town Council Chairperson George William Cana and Rubanda District LCV Chairperson Stephen Kasyaba Ampeire, have been actively involved in advocating for the residents' interests.
The project's progress will depend on the government's ability to address the residents' concerns and provide fair compensation. The iron ore mining project is expected to have a significant impact on the local community, and its implementation will be closely monitored by residents, local leaders, and the company involved.
Key points
- The government has directed a fresh valuation exercise to address residents' concerns over low compensation.
- Over 161 people are expected to be relocated for the iron ore mining project.
- The project is expected to bring economic benefits to the area, but concerns over compensation remain.
