Busia gold refinery hits snag over compensation

Busia. The government plan to establish Shs200 billion gold refinery in Mawero Parish in Buteba Sub-county in Busia District has hit a deadlock after the project affected families rejected compensation for their land, saying it’s too little.
The more than 400 land owners, mostly from the four villages of Alupe, Agoriata, Akipeneti and Amagoro, all situated in Mawero Parish, said the money they were being paid cannot facilitate their relocation.

Initial compensation
The Chinese company Wagagai Mining Company (U) Ltd, had reportedly started compensating residents to acquire surface rights of the land for a period of 20 years in order to set up a multi-billion gold mining and refinery plant.
The area has estimates of 12.5 tonnes of mineable gold reserves and it is considered the biggest gold deposit in Uganda.
Daily Monitor has learnt that more 150 families of the 401 affected had already been compensated.
But during a meeting, which took place at Alupe Primary School at the weekend, residents said they can only move away from their land if they are paid adequate compensation for their land and property.

In attendance
The meeting was attended by the project affected families, the Chinese investors and chaired by State minister for Minerals Peter Lokeris.
Mr Ibraham Mwaka, one of the residents: said “We want the compensation process being carried out by the company to be halted because they flaunted the evaluation process and we want the whole process stopped.”
He explained that he bought an acre of land in the area at Shs16m and he has since constructed a commercial building, a residential house and planted crops, but the investor was offering him less than Shs20 million.
Residents also complained that the mining company had not carried out an environmental and social impact assessment report, which is a requirement before they start mining.

Mr Derrick Rukare, the Wagagai mining company lawyer, however, said they have already carried out the environmental assessment report with officials from the National Environment Management Authority.
“We also arrived at the compensation rates in relation to the current land prices and compensation rates in Tororo District, which are more current compared to the Busia rates that were last reviewed in 2011,” Mr Rukare said.
The Busia woman Member of Parliament, Ms Jane Nabulindo Kwoba, called for a total halt to the compensation process so that fresh re-evaluation of the residents’ land and property is carried out.
“We want the compensation process being carried out by the mining company to be halted because you cannot pay Shs1.8m for a plot, this money is too low,” Ms Nabulindo said.

Mr Geoffrey Wandera, the Busia District chairperson, said he wrote to the chairperson of the district land board, so that they sit and review compensation rates.
Mr Lokeris, however, said the affected persons will be compensated with enough money to enable them go and start a new life elsewhere.
He added that a team will be sent to meet the residents and look into issues of compensation.

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