ANGLO American South Africa (AASA) and AngloGold Ashanti have agreed to pay at least R464m in compensation to miners who allegedly contracted silicosis, a lung disease, whilst working on the mines of the companies.
In terms of the out of court agreement, the monies will be paid into an independent trust which will determine the eligibility of the miner’s claims. The agreement falls in the wake of some 4,400 stand-alone claims of which 1,200 brought against AngloGold. The matter was to be heard in court in April.
Mbuyisa Neale attorneys, a Johannesburg company that brought the claims said in a statement that the total amount payable was R500m. Anglo American and AngloGold would also fund the costs of the Trust and the medical evaluations. Mbuyisa Neale was assisted by the UK human rights lawyers, Leigh Day.
Zanele Mbuyisa of Mbuyisa Neale said that continuing with the litigation, rather than settling “… would have meant a further substantial delay in receipt of compensation, which the claimants and their families cannot afford.”
In order to qualify for compensation, claimants will need to be medically diagnosed with silicosis and to have worked on Anglo American or AngloGold mines for at least two years.
Payments will be based on a tariff system, which will reflect the severity of disease and age of the claimant. Relatives of deceased claimants who meet the criteria will be included.
“This settlement is a triumph for justice and accountability,” said Richard Meeran of Leigh Day who has long campaigned for miners’ rights in South Africa.
“It will bring much needed financial relief to the victims and their families. This settlement scheme provides a model and, we hope, the necessary impetus for an industry-wide settlement for all gold mining silicosis victims,” he said.
“We have sympathy for all miners who have contracted silicosis and believe that the agreement to settle this litigation is in the best interests of the plaintiffs, their families, AASA and its wider stakeholders,” said Andile Sangqu, executive head of AASA.
The claims were instituted from 2012 and are completely separate from the silicosis class action proceedings that are currently awaiting a decision on certification from the Johannesburg High Court.
In November 2014, Anglo American South Africa, AngloGold Ashanti, Gold Fields, Harmony and Sibanye Gold announced that they had formed an industry working group which has since been extended to include African Rainbow Minerals, to address issues relating to compensation and medical care for occupational lung disease in the gold mining industry in South Africa.
The industry working group is seeking a comprehensive solution to address legacy compensation issues and future legal frameworks that are fair to past, current and future employees, said AASA.
