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Managing Compensation Agreements

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Managing Compensation Agreements


When operations are initiated at a new site, mining companies face the numerous and diverse challenges of compensating communities affected by mining.  Impacts in the area of operations include land acquisition, damage to the surface of land and buildings, crop damage and disturbance to the rights of owners or occupiers caused by works, improvements or other activities in the mineral rights concession area.

Compensation is usually based agreements negotiated between the concerned parties and stakeholders. Compensation procedures are designed to ensure a uniform, systematic, and timely method of recording, approving, and paying for destruction of land and crops.

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Companies that initiate exploration and extractive projects with potentially adverse social and environmental impacts need to monitor and track Compensation of local communities.


  • Interact and negotiate with the local communities and other stakeholders.
  • Execute appropriate Agreements with the local communities that include negotiated compensation rates.
  • Conduct accurate spatial measurements and valuations for Compensation.
  • Ensure a uniform, systematic, and timely method of recording, approving, and compensating for damages to land, crops, trees, livestock etc.
  • Ensure that farmers are informed and participate fully in the process of receiving appropriate cash compensation.


  • Model processes relating to Compensation Agreements into Workflows according to the mining company's specific procedures and the negotiated agreements.
  • Manage all the relevant Documents, Reports and Forms relating to the Compensation Agreement.
  • Manage all processes, within the given time frame, including scheduled meetings, surveys, payments, notifications etc.
  • use integrated GIS mapping tools to provide precise localities for all aspects of the Compensation Agreement including area validations, resettlement plots, graves etc.
  • Manage payments and rates for the numerous items for which compensation is due.


A fully managed Damage Compensation programme integrating the Agreements established between the mining company and affected parties. 

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