Globe Metals and Mining has given 203 households affected by its niobium mining project in Kanyika, Mzimba three months to move after getting K2.42 billion compensation.
In a report issued yesterday, the company said the compensation covered land, structures, businesses, trees and plants as well as moving and disturbance allowances.
During the assessment, trees and plants received the largest share at K1.06 billion, followed by structures at K633.7 million and land at K466.1 million. Businesses were allocated K12.5 million.
The company said payments were made directly to the affected people’s bank accounts, followed by a three-month relocation, harvest and moving period.
“Compensation payment s completed with payments made directly to PAP bank accounts, followed by a three-month relocation, harvest and moving period,” the report reads in part. “The government and local chiefs have confirmed that, following payment of the agreed compensation, Globe is permitted to access and use the compensated land while PAPs complete their three-month relocation period.”
The company said K59.2 million was also set aside for community assets, including a church, boreholes, taps, a shallow well and a playground. Graves and cultural heritage sites are being handled separately, bringing the Phase One total to K3.09 billion.
The development follows the withdrawal and discontinuation on September 14 of long-standing High Court of Malawi proceedings involving 243 Kanyika community members. The case began in 2017
Globe Metals and Mining interim chief executive officer Charles Altshuler said each household had verified assets and compensation, adding that the company would continue working with stakeholders throughout the resettlement process.
However, some affected residents say three months is inadequate, particularly with the farming season approaching.
Wels Nkhoma, one of the affected residents, said the community had asked for more time but was unsuccessful.
“We had a meeting on Wednesday, where we asked that time be extended because we are already close to the farming season, but the company has refused to grant any extension. It’s difficult because we have to look for land, construct and settle by December 31,” he said.
Mzuzu Diocese Cathol i c Commission for Justice and Peace coordinator Felix Manda said the initial plan and agreement between PAPs and the company was that mining operations and activities will only start when the affected community members have relocated elsewhere.
On his part, Church and Society programmes manager Mining Governance Project, Paul Mvula, said the company earlier promised 12 months’ relocation notice.
But responding to the concerns, the company’s managing director Lusungu Chirwa said the affected households opted to receive cash compensation rather than have houses constructed for them in the designated resettlement area.
Niobium global supply remains constrained, with more than 90 percent sourced from a single Brazilian producer, while demand continues to rise in aerospace, defence, batteries and advanced manufacturing, positioning Kanyika Niobium Project as a critical supplier.
