Sotta mining starts compensation payments

Sengerema. Sotta Mining Corporation Limited (SMCL), the developer of the Nyanzaga Gold Project, announced yesterday that it has commenced compensation payments for project-affected people as part of the company’s Resettlement Action Plan (RAP).

This comes after the firm received A$28 million in funding from Silvercorp Metals Inc., which is to acquire 100 percent of the shares of OreCorp. The compensation process, which was undertaken in line with IFC Performance Standards, entitlement briefings, and the signing of compensation agreements, commenced on August 1, 2023, in Sotta and Nyabila Villages.

According to the company statement released yesterday, to date, briefings have been held with 618 of the 853 project-affected people who are entitled to compensation.

The aim of the entitlement briefings is to ensure that all project-affected people are presented with the compensation they are eligible for, be it via cash payment or in-kind replacement options, and to negotiate and agree on the final compensation options. Compensation may include replacement land, housing, and/or cash. Speaking on behalf of Mwanza Regional Commissioner Amos Makalla, Nyamagana District Commissioner Amina Makilagi thanked the mining company for the compensation payments as she told the public about the benefits of the project.

“This project, my fellow Tanzanians, will contribute to the economy of the country through the creation of employment opportunities. It is not only about receiving the compensation funds and leaving.

When the project starts, jobs will be created here, and many will benefit from the opportunities. There will be permanent and contract jobs,” she said.

During the construction phase of the project, there will be more than 1,000 permanent jobs created for the citizens living here and in other areas.

However, after the construction phase reaches completion, more than 1,000 contract jobs will be generated.

“This is a major investment that is going to impact the citizens directly,” she added.

SMCL’s chief financial officer, Mr Isaac Lupokela, said the first cash payments for fully executed agreements were made on September 4, 2023.

“As a company, we are pleased to officially start the compensation exercise by paying 142 project-affected people a total of Sh3.7 billion following the receipt of A$28 million from SilverCorp Metals Inc,” he said.

“The resettlement exercise is now very smooth, and we look forward to successfully completing the compensation payments within the next couple of months, depending on the rate at which the project-affected people sign the agreements,” he added.

SMCL is a joint venture between the government of Tanzania, which carries 16 percent, and Nyanzaga Mining Company Limited, which has 84 percent. Nyanzaga is a subsidiary of OreCorp Tanzania Limited. The plan is to invest Sh1.1 trillion in the project, located in Mwanza.