(UN)JUST COMPENSATION: Coal mine relocation families paid ‘less than 5% of their real losses’
What happens to the people ‘relocated’ from their homes and land to make way for major coal-mining ventures? Do they get a fair deal to compensate them properly for what they lose? In the case of the Tendele coal mine in rural KwaZulu-Natal, the answer is ‘no’, according to a new study by university researchers.
A new study reveals that families displaced by the Tendele coal mine in rural KwaZulu-Natal have received only a fraction of the compensation they are owed. Researchers estimate that affected households lost more than R80 million in land, crops, and livestock since mining operations began in 2007. However, compensation provided to residents amounted to just 4.7% of their total losses.
The mine, owned by Tendele Coal Mining (Pty) Ltd, began full-scale production shortly after initial operations started in 2006. Despite ongoing litigation and regulatory proceedings, Tendele Mining declined to comment further on the findings. The researchers argue that traditional compensation methods, which focus on market-replacement prices for lost assets, fail to account for the long-term economic impact on affected communities.
They propose a more holistic "asset-based livelihoods approach" that values lost assets as future income streams, providing a more accurate picture of the true cost to rural communities.
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