LAUSR

Abstract 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.