Mining-induced displacement and resettlement in Afghanistan's Aynak mining community: Exploring the right to fair compensation

• Published in: Resources policy 2021-12, Vol.74, p.102285, Article 102285
• Main Authors: Khan, Ghulam Dastgir, Yoshida, Yuichiro, Katayanagi, Mari, Hotak, Nematullah, Caro-Burnett, Johann
• Format: Article
• Language: English
• Subjects: Agricultural land; Aynak-Afghanistan; Compensation; Conjoint analysis; Copper mines; Developing countries; Displacement; Economic analysis; Empirical analysis; Families & family life; Homeless people; Households; Infrastructure; Land; LDCs; Livelihood; Loans; Miners; Mining; Mining industry; Prevention; Randomized conjoint experiment; Relocation; Resettlement; Respondents; Social capital; Sociocultural factors
• ISSN: 0301-4207; 1873-7641
• DOI: 10.1016/j.resourpol.2021.102285

Recent literature indicates that mining-induced displacement and resettlement practices inadequately compensate affected families, particularly in developing countries. This paper focuses on the Aynak copper mine project in Afghanistan and measures the minimum compensation package that aligns with the sociocultural and economic preferences of affected households. Our analysis of the legal framework exposed legislative lacunae, particularly the lack of a consultation process, while the empirical study uncovered the voice of the displaced. We gathered 2800 choice responses from 280 respondents, with an average age of 39 years, to identify their preferences regarding a displacement compensation package including provision of social capital, land, loans, and monetary compensation. Out of 393 affected households, all those whom we could contact were surveyed during January and February 2019. We use a randomized conjoint analysis to show that the ideal relocation policy should compensate mainly via agricultural land, followed by other standard economic terms such as residential land and loans for infrastructure. Moreover, the study suggests that compensation packages should be designed based on the inclusion of project-affected families' voices and should account for social capital, livelihood restoration, homelessness prevention, and monetary compensation. •We study a compensation package for families affected by the Aynak mining project.•Following the legal framework that exposed legislative lacunae, particularly the lack of a consultation process, we use randomized conjoint analysis to identify family's preferences over menus of compensation packages.•Our results show that so far, affected families have been offered an unsatisfactory compensation; that is why most of them are reluctant to accept the package.•The social-capital loss is very important to families, but it has never been considered as a part of any compensation package.•The two other main variables that are more likely to affect a family's probability to accept a compensation package are monetary assistance (either a lump sum transfer or a loan) and agricultural land.