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AngloGold lawsuit seen as a test case Posted: Mon, 09 Oct 2006 [miningmx.com] -- THE R2.6m lawsuit brought against AngloGold Ashanti by sick former employee could change the way mineworkers are compensated for lung diseases incurred at some of the world's deepest mines. The mines ministry might intervene if it proves disruptive to the mining sector. AngloGold Ashanti is to be served a summons in a R2.6m lawsuit brought on behalf of a sickly former employee of the company by Richard Spoor and fellow attorney Charles Abrahams and an international alliance of class action law firms centred in Washington, Spoor said. AngloGold has declined to make any comment on the matter. Richard Spoor is a human rights and occupation injuries lawyer spearheading a legal charge against AngloGold Ashanti, 41.8% owned by Anglo, and the world’s largest platinum producer Anglo Platinum, which is 79% held by Anglo. In the case of AngloGold Ashanti, he argues, a former worker Thembekile Mankayi has been left destitute with a wife and 10 children when his health failed to the point where the could no longer work. He was paid R16,300 in compensation after 16 years at AngloGold Ashanti’s Vaal Reef operations. The director general of the Department of Minerals and Energy, Sandile Nogxina, said the case would be closely followed to see if it posed any possible disruption to the mining industry. "We would not want to be seen as standing in the way of someone following their rights, but we would not like to see a situation that is damaging to the mining industry," Nogxina told Miningmx. "We may have to get involved in a mediation and facilitation process. We won't come in in a regulatory or administrative capacity," he said. "We hope sanity will prevail. It is my wish that this matter be resolved out of court. If it sets a precedent it could open a floodgate of litigation." Under South African law, the Compensation for Occupational Injuries and Diseases Act, workers or their families may not sue an employer for injury or death incurred at the work place. The compensation commission pays out claims. However, mineworkers are covered under the Mineworkers Occupational Diseases in Mineworkers Act, which limits their payouts in event of falling ill from working conditions to just a fraction of that awarded under the other act. Abrahams puts it at roughly a tenth. This is the kernel of what the lawyers want to challenge. The lawyers think AngloGold Ashanti will oppose the summons under the provisions of the general act. The matter is envisioned being brought before the courts to argue about which act applies in this case– either the general compensation Act or the mineworkers diseases Act. They will also argue the existing structure is not constitutional. “We will make the argument that mineworkers are not covered by the general Act,” said Abrahams. Basically, the lawyers will argue it could not have been the intention of the drafters of the legislation related to mineworkers to prevent them from suing their employers if their payouts were just a fraction of that provided for under the general Act. According to the Sunday Independent story, bringing compensation for mineworkers up to the level of other industries will cost R10bn, while paying every worker in southern Africa, where the mines draw their labour from, would cost R100bn. Spoor said there was recognition in the industry that compensation was inadequate, but there has not been much movement from companies, which face increased contributions, the government or unions. “We hope those crucial legal principles can be tested and determined within weeks or months or most,” he said.Free news alerts: click here to subscribe
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