Prime Minister Robinah Nabbanja has questioned Ministry of Lands officials over complaints by residents of Rubanda District that their land had been undervalued ahead of an iron ore mining project by Devki Steel Mills Limited.
The company was granted permission earlier this year to conduct iron ore mining activities in Rubanda District and transport the crushed ore to the company’s steel mill in Tororo for processing.
The iron ore deposit earmarked for mining is located on 60 acres in Mufumba Village, Butare-Katojo Town Council, Rubanda West County. However, the land is fragmented and individually owned by residents.
President Museveni directed the government to compensate the affected landowners before the land is handed over to Devki Steel Mills Limited to allow mining activities to begin.
However, when Nabbanja arrived in Mufumba Village on Wednesday afternoon to hand over the land to the investor, she was met by residents protesting what they described as inadequate compensation resulting from an undervaluation of their land.
The residents, represented by their LCI Chairman, Paul Tibenderana, said several errors were made during the valuation process, resulting in compensation amounts that they considered insufficient.
Tibenderana said some residents had received as little as six million shillings, which he argued was inadequate to enable them to buy alternative land and relocate. He asked Nabbanja to intervene and address their concerns.
Tibenderana was backed by George William Kana, the LCIII Chairman of Butare-Katojo Town Council, who said the compensation paid to residents was insufficient to enable them to relocate. Kana also raised concerns over the potential effects of mining activities, including soil erosion onto their land and homes. Kana further expressed concern that mining activities were being prepared to commence before all affected landowners had been fully compensated.
Rubanda District Chairman Stephen Ampeire Kasyaba said that while residents support the government’s decision to allocate the land to the investor, they need a fresh valuation to ensure that they receive adequate compensation to enable them to acquire alternative land and relocate.
Senior Presidential Advisor and Coordinator of Security and Intelligence Services Colonel Emmy Katabazi, a resident of Butare-Katojo Town Council, proposed that the government purchase alternative land and relocate the affected residents.
Katabazi cited the approach being used to resettle people affected by landslides in eastern Uganda as a possible model. However, Nabbanja rejected the proposal, saying it would be difficult for the government to identify and secure alternative land for all the affected residents.
Nabbanja subsequently tasked Dr Emmanuel Freddie Mugunga, the Under Secretary in the Ministry of Lands, and Gilbert Kermundu, the Chief Government Valuer, to explain why residents were protesting the valuation process.
In response, Mugunga said the land had been valued at 40 million Shillings per acre, with each resident’s compensation determined by the size of their individual parcel. He explained that some residents received relatively small amounts because many owned between 0.3 and 0.7 acres, and added that by Friday last week, 99 per cent of the project-affected persons had received their compensation.
Nabbanja told the residents that President Museveni had sent her to appeal to them not to frustrate the investor, arguing that the project is expected to deliver several development benefits to the area and the country. She directed that the 30 per cent disturbance allowance for project-affected persons be paid as soon as possible.
Nabbanja also instructed Ministry of Lands officials to meet individually with each of the residents who had raised complaints and resolve their concerns within one week. She said the outstanding issues should be addressed to allow the investor to commence mining activities without further delays.
Dr Narendra Raval, the Founder and Executive Chairman of Devki Steel Mills Limited, said the project, once fully implemented, would create thousands of jobs for Ugandans and generate revenue for the government.
He added that the company also plans to establish an iron ore refinery in Rubanda District once the district provides the 52 acres of land requested by the company. He said the mine in Butare-Katojo Town Council and the steel plant in Tororo District are expected to employ more than 15,000 people. The projects, he added, will contribute to Devki’s target of employing 41,000 people across East Africa by the end of 2027.
Raval also revealed that the company plans to establish another steel plant in Mbarara, in addition to its existing plant in Tororo. He said the planned investments are expected to cost one billion US dollars and enable the company to export steel products worth about 500 million US dollars annually-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
