The Khotakpa Gypsum Mine is located at Khotakpa Village under Shumar Gewog and has been operational since the 1980s. However, unlike most mining operations, it is closely surrounded by human settlements.
Issues have been raised by the nearby settlements that they are being affected by the mining activity such as dust and structural damage. Accordingly, The Dzongkhag Administration, PemaGatshel has raised the structural damage concern to the Department of Geology and Mines (DGM) upon the receipt of formal concern shared through Shumar Gewog. DGM then in collaboration with the current mine operator, SMCL formed an Impact Assessment Team which decided to maintain a safe distance of 150 meters from the ultimate mine pit plan and acquired the land falling within the safe distance.
A total of 70 land owners have been identified within the 150 meter safe distance, their land, structure, fruit trees, cash crops and forest trees have been evaluated. A total of 13 land owners opted for full cash compensation and 54 land owners opted for land substitution while 3 land owners opted for half cash and half land substitution.
To process for land substitution and to pay cash compensation, a stake holder meeting was held on 20th March 2026. The meeting was attended by Director General and 3 officials from Department of Geology and Mines, General Manager and 6 officials from SMCL, MP of Shumar, Nanong, Zobel constituency, Shumar Gup and CFO from DoFPS. From the Dzongkhag administration Dasho Dzongdag, Dasho Dzongrab, Agriculture, Engineering, Finance, environment and land sectors joined the meeting. During the meeting the date for cash disbursement was agreed on 27th March, 2026 and accordingly disbursed on the said date.
While many residents expressed gratitude for the support and compensation provided, the families were also sad to leave their homes and the years of memories, and connections to the land. SMCL has committed to providing essential amenities – such as electricity, water supply, and road access – at the resettlement sites for those opting for land substitution.
The Department of Geology and Mines, SMCL, and the Dzongkhag Administration will continue to work collaboratively to ensure the smooth resettlement of the affected households.
