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Khothakpa-Denchi residents to receive land replacement and compensation by next month

December 11, 2025
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Residents and landowners in Khothakpa–Denchi, Pema Gatshel, affected by the SMCL’s gypsum mining operations, will receive land replacement and property compensation by next month. The Minister for Energy and Natural Resources told the National Assembly today that the ministry has directed SMCL and Druk Holding and Investments to expedite the long-delayed process.

Yeshey Jamtsho, Nanong–Shumar MP

During the Question Hour, Nanong–Shumar MP Yeshey Jamtsho asked the Minister for Energy and Natural Resources about the status of land replacement and compensation. He said damage assessments from SMCL’s gypsum mining were completed nearly a year ago, yet affected families have not received compensation.

To this, the minister said the assessment report was submitted to the Cabinet in March this year.

Gem Tshering, Energy and Natural Resources Minister

Energy and Natural Resources Minister  Gem Tshering said, “The initial compensation amount is Nu 174.65 M, with an additional 2 per cent contingency for all affected individuals. The ministry has consulted with the district and instructed DHI and SMCL to expedite the compensation process.”

The SMCL will replace land owned by 70 individuals, totalling more than 58 acres.

“After consultations with the district, local government, and the people, Gashari-Bali and Aumshing Woog have been identified as suitable areas for land replacement,” said the minister.

National Assembly of Bhutan

Meanwhile, several Members of Parliament called for clear guidelines and long-term strategies to avoid similar problems in the future.

Tashi Tenzin, MP, Radhi-Sakteng, Trashigang, NA

Radhi-Sakteng MP Tashi Tenzin said, “It often happens that when something is to be taken from the people, it is done immediately. However, when it comes to the government returning it, the process takes much longer.  Studies and assessments delay compensation. From my perspective, such issues can continue to arise. Therefore, the government needs to have policies or guidelines specifying clear turnaround times.”

Loday Tsheten, MP, Gangzur-Minjey, Lhuentse, NA

“If we consider whether the people of Pema Gatshel have benefited from gypsum mining, the answer is no. All they have received is dust, which has severely affected the residents there. Even the Public Accounts Committee has noted that if the government generates profit and the state benefits, the people should not suffer,” said Loday Tsheten, Gangzur-Minjey MP.

These problems are expected to be resolved with the Mines and Minerals Bill, which will be tabled for amendment in the next Parliament.

The energy and natural resources minister said, “Last year, the House instructed us to submit the Mines and Minerals Bill. However, we could not present it this time as we are currently conducting a magnetic survey, which needs to be completed first. We have prepared a draft, and once the survey is finished, the bill, along with its guidelines, will be presented in the next session.”

With compensation and land replacement now on a clear timeline, affected families in Khothakpa can finally expect relief.

Kinzang Lhadon

Edited by Sangay Chezom

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