Land for equity? A benefit distribution model for mining‐induced displacement and resettlement

Abstract

AbstractLand access is central to natural resource development projects. Business strategy for securing continuing tenure to support operational activities is therefore a key factor in determining the overall success of resource projects. A major shortcoming in resettlement planning has been the failure to address basic inequities stemming from the transfer of land assets. Compensation for land in conventional models neglects to account for the potential or intended use of the developer, meaning that affected people (APs) assets are grossly undervalued in the environment in which they acquired. Not only do resource projects under‐compensate APs for their losses, but programming for livelihood restoration and the enjoyment of project benefits more generally has proven to be almost universally poor. Performance outcomes reflect short‐term project milestones but lack a strategic dimension regarding how the company will maintain land access and the continuing support of its nearest stakeholders. Innovations are needed on at least two fronts: (i) the recognition of AP land values in mining project developments and (ii) enterprise financing to avoid the issue of companies driving incurred compensation costs downward. This article outlines the conceptual basis of a land pooling model as the means for securing financial equity for people displaced by mining projects. The authors conclude that the land pooling model of resettlement (LPMR) can improve the short‐ to medium‐term economic conditions of APs and advances suggestions to further promote a balance of interests in mining‐induced displacement and resettlement cases.