Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002)NoticesMine Community Resettlement Guidelines, 20229. Resettlement and Compensation |
| 9.1 | Resettlement of landowners, lawful occupiers, holders of informal and communal land rights, mine communities and host communities to make way for mining activities must as far as possibly enhance and improve affected community livelihoods such as housing, schools, health facilities and recreational facilities. |
| 9.2 | No mining activity shall commence until a resettlement agreement is reached on the appropriate amount of compensation as a result of resettlement of landowners, lawful occupiers, holders of informal and communal land rights, mine communities and host communities. The Resettlement agreement must reflect the contents of the Resettlement Plan and Resettlement Action Plan. |
| 9.3 | The objective of resettlement is to enable the relocation of individuals, households, and communities to new locations. Companies should take the following factors into consideration: |
| (a) | Creating an enabling environment that allows the livelihoods and standard of living of affected people to be improved, or at least restored. |
| (b) | Reflecting the way people live in their current location and meet their key requirements in terms of living space, functionality and access to resources cultural considerations should be considered in the design process. |
| (c) | Any resettlement solution should be considered in the local context and offer choices to those being resettled, with the informed participation of affected people and statutory authorities.Resettlement sites and designs should be developed and agreed with all stakeholders, not just community leaders or statutory authorities. |
| (d) | The relocation of households and communities should preserve existing social networks, livelihoods and maintain community and household cohesion. |
| (e) | Maintaining links with existing assets and resources not affected by resettlement or replace them. |
| (f) | Enabling resettled people to appropriately share in benefits, for example project-related employment and provision of relevant services required for the relocation or be linked to existing business opportunities within the mining operation. |
| (g) | Offering fair, equitable and adequate replacement housing and house plots that are at least the same standard as existing housing and ideally better. |
| (h) | Ensuring the replacement of all existing community facilities, related infrastructure, and provision of additional facilities and infrastructure as required by local planning regulations. |
| (i) | Ensuring upkeep of new housing and facilities are affordable for the recipient. |
| (j) | Providing security of tenure through registration of property rights by regulatory authorities the process of security of tenure may be lengthy and should be planned accordingly. Allowing for ongoing development and expansion of the new community. |
| (k) | Businesses should be considered early in the process, as potential drivers of resettlement communities. |
| (I) | Communities in which resettled people will be hosted should be considered in planning from day one and should see benefits in the resettlement process. |
| (m) | Statutory authorities should be involved from the outset, in order to ensure timely approvals and adoption of infrastructure. |
| 9.4 | Calculation of compensation amounts. |
| 9.4.1 | There is no standard formula for determination of sufficient compensation as a result of resettlement. Compensation rates should be determined based on the local context and current full replacement values. A transparent, participatory approach to determining compensation should be undertaken. An experienced Independent Valuer deemed acceptable to companies and communities should be used. The compensation policy should be consistent. The methods used for valuation should be clearly documented and disseminated. Compensation rates should be updated if the process is undertaken over a long period. |
| 9.4.2 | The rate of compensation for lost assets must be calculated at full replacement cost, that is, the market value of the assets plus transaction costs. With regard to land and structures, replacement costs are defined as follows: |
| (a) | Agricultural and grazing land: the market value of land of equal productive use or potential located in the vicinity of the affected land, plus the cost of preparation to levels similar to or better than those of the affected land, plus the cost of any administration, registration, and transfer taxes. |
| (b) | Land in urban areas: the market value of land of equal size and use, with similar or improved public infrastructure facilities and services preferably located in the vicinity of the affected land, plus the cost of any administration, registration, and transfer taxes. |
| (c) | Household and public structures: the cost of purchasing or building a new structure, with an area and quality similar to or better than those of the affected structure, or of repairing a partially affected structure, including labour and contractors' fees and any administration, registration and transfer taxes. |