Prime Minister Robinah Nabbanja has ordered officials from the Ministry of Lands, Housing and Urban Development to repeat the valuation and compensation assessment for land acquired for an iron ore mining and processing project in Rubanda District following complaints that some affected residents were under-compensated.
Ms Nabbanja issued the directive on Wednesday while officiating at the handover of 60 acres of iron ore-rich land in Mufumba Village, Butare-Katojo Town Council, to Devki Steel Mills (U), which plans to mine and process iron ore in the area.
Some local leaders told the Prime Minister that several project-affected people were dissatisfied with the compensation they received, saying the money was insufficient to enable them to acquire alternative land for farming and settlement.
Ms Nabbanja later handed a land certificate to Devki Steel Mills (U) chairman Raval Narendra and directed the Ministry of Energy and Mineral Development to expedite the company’s mining licence.
“I hereby order the officials from the Ministry of Lands, Housing and Urban Development that conducted this exercise to work with the local leaders and move house to house, piece of land to another and ensure that the raised concerns on under-valuation are fully addressed and everybody is satisfied,” Ms Nabbanja said.
“We don’t want to hear that our investor has land issues here and there because President Museveni was clear on this matter. After two weeks I will come back here to verify that everybody in this area is fully satisfied.”
Her directive followed complaints from Mufumba LC1 chairman Paulo Tibenderana and Rubanda District LCV chairman Stephen Kasyaba over the compensation process.
“Although people in this area are welcoming the investor, they claim that the money given to them is not enough to facilitate them acquire alternative pieces of land for their livelihoods,” Mr Kasyaba said.
He said the district council had already earmarked 52 acres where an iron ore processing plant could be constructed, as requested by President Museveni.
Mr Kasyaba also asked the government to consider compensating owners of land neighbouring the acquired project area to avoid disputes and other inconveniences associated with mining and crushing activities.
However, the ministry defended the valuation process.
The ministry’s chief government valuer, Gilbert Kermundu, said officials had consulted the Rubanda District Land Board, the 161 project-affected people and other residents before setting the compensation rate at Shs40 million per acre.
He said the rate took into account land scarcity in the area and that compensation was calculated according to the size of each affected person’s landholding.
“We paid the project affected people using this measure because individual land size was different as some people had less than 0.03 acres of land,” Mr Kermundu said.
He added that the affected residents were entitled to an additional 30 per cent of the compensation as disturbance allowance to facilitate their relocation.
“Kindly accept what the government has given you,” he said.
The ministry’s Under Secretary, Dr Emmanuel Mugunga, said about 99 per cent of the project-affected people had been compensated, questioning the basis of the complaints raised during the ceremony.
The compensation dispute comes as the government seeks to clear outstanding land issues and enable Devki Steel Mills to commence the planned mining and processing operations.
Mr Narendra appealed to the government to extend hydropower electricity to the project area to support the company’s operations.
He also pledged to employ local residents and support schools in neighbouring communities through education sponsorships and school feeding programmes.
Source: monitor.co.ug
