Residents of Mufumba Village in Butare-Katojo Town Council have raised concerns over what they describe as inadequate compensation for their land as the government moves to pave the way for an iron ore mining project by Devki Steel Mills Limited.
The concerns emerged on Wednesday during a land handover ceremony presided over by Prime Minister Robinah Nabbanja, marking a key step towards the development of the iron ore project.
More than 161 people are expected to be relocated to pave the way for the mining activities.
The affected residents, led by Butare-Katojo Town Council Chairperson George William Cana, Rubanda District LCV Chairperson Stephen Kasyaba Ampeire, and Senior Presidential Advisor on Security and Intelligence and Coordinator of Security and Intelligence Services, Col. Emmy Katabazi, expressed dissatisfaction with the compensation amounts being offered for their land.
They argued that the proposed payments of between Shs3 million and Shs5 million were too low to enable them to acquire alternative land elsewhere.
The leaders called for a review of the valuation process, warning that inadequate compensation could leave affected households struggling to resettle after giving up their land for the project.
In response to the concerns, Prime Minister Nabbanja directed the Ministry of Lands, Housing and Urban Development to conduct a fresh valuation exercise for the affected properties.
She instructed the ministry to undertake a house-to-house and land-to-land assessment to ensure that each affected resident’s property is individually evaluated.
The directive is expected to address the concerns raised by residents and establish whether the compensation offered adequately reflects the value of the land and properties affected by the mining project.
The reassessment could provide an opportunity for the government to review the valuations and clarify the compensation process before the affected residents are relocated.
The Chairperson of Devki Steel Mills Limited, Narendra Raval, assured the public that the project would bring benefits to the area and 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, although the concerns raised by residents have placed compensation and resettlement at the centre of discussions surrounding its implementation.
The fresh valuation exercise will be crucial in determining how the government addresses the affected residents’ concerns as preparations for the project move forward.
