Sotta Mining starts paying compensation

MWANZA: SOTTA Mining Corporation (SMC), the developer of the Nyanzaga Gold Project, has commenced compensation payments for project-affected people.

The compensation is part of the company’s resettlement action plan after receiving 28 million Australian dollars from Silvercorp Metals Inc.

The compensation process is undertaken in line with International Finance Corporation (IFC) performance standards, and entitlement briefings. The payment began early last month in Sotta and Nyabila Villages in Sengerema district, Mwanza.

To date, briefings have been held with 618 of the 853 project-affected people who are entitled to compensation. The compensation may include replacement land, housing, and/or cash.

Speaking on behalf of Mwanza Regional Commissioner, Amos Makalla, Nyamagana District Commissioner, Amina Makilagi, thanked SMC for the compensation payments as she told the public that the presence of the Nyanzaga Gold Project brings a lot of social and economic benefits to the people of Sengerema and the nation as whole.

“It is not only about receiving the compensation funds and leaving. There will be permanent and contract jobs,” she said.

SMC has it that during the construction phase of the project before the mining process starts there will be more than 1000 permanent jobs.

SMC’s Chief Financial Officer Mr Isaac Lupokela said they have already compensated 142 project-affected people paying 3.7bn/-.

“The resettlement exercise is now very smooth and looking forward to successfully completing the compensation payments within the next couple months to come depending on the rate of signing the agreements by the project-affected people,” Mr Lupokela said.

Silvercorp Metals Inc has acquired 100 per cent of OreCorp.

SMC is a joint venture between the government owns 16 per cent and Nyanzaga Mining Company 84 per cent—a subsidiary of OreCorp Tanzania.

The 1.1tri/- gold mine project is south of Ngoma in the Sengerema.