Families that have lost their assets due to a mining project in Mzimba district have been advised by rights activists to opt for houses as compensation instead of cash.

Over 240 families are expected to receive compensation from Globe Metals and Mining Company following the niobium mining project in Kanyika area.

The Australian mining company has pledged to construct a two-bedroomed house, kitchen, bathroom and toilet as compensation to each family instead of cash.

However, out of the total figure, 129 families have opted for cash amounting to 300 thousand Kwacha.

The company in collaboration with district council officials engaged relevant authorities to calculate compensations for the lost assets.

Speaking to the media, Catholic Commission for Peace and Justice Diocesan Secretary for Mzuzu Alnord Msimuko said they are mobilizing communities to make informed choices on compensations to avoid future regrets.

According to Msimuko, the money will be a source of poverty as most of them are likely to misuse the compensation.