$400m silicosis class action agreed for South African gold miners

Six South African gold mining houses have agreed a ZAR5bn ($400m) class action settlement with law firms representing thousands of miners who contracted the fatal lung diseases silicosis and tuberculosis. In the first class action settlement of its kind ever reached in South Africa, the agreement follows a six-year legal battle by miners to win compensation for illnesses they claim resulted from negligence in health and safety. The settlement is broken into three parts and a trust will have 12 years to track down the claimants and distribute the funds. ZAR845m will be used to cover the administration expenses of the trust during the 12 years and ZAR370m will be paid to the law firms. The remainder is for compensation and the final total will depend on the number of claims that are processed. Graham Briggs, who chaired the Occupational Lung Disease Working Group, a unit put together by the six companies, said: “If there are more claimants than the actuaries have estimated, then that ZAR5bn number could increase. If there are less, then it will decrease.” Richard Spoor, one of the lawyers representing the mine workers, said: “Our numbers differ slightly from the industry; we think there are more claimants and that the numbers will be higher than what they anticipate. While we differ slightly with the industry, we think it’s all in the same ballpark.” In addition to the anticipated settlement payout, there is also close to ZAR4bn in a compensation fund that companies have been contributing to for years. The companies involved are Harmony Gold, Gold Fields, African Rainbow Minerals, Sibanye-Stillwater, AngloGold Ashanti and Anglo American South Africa. The six had already set aside the settlement amount in provisions in previous financial statements and Reuters reported it should not affect future earnings, unless the number of claimants who come forward exceed the current provisions. Estimates for the number of potential claimants range from tens of thousands to hundreds of thousands. Three smaller gold producers are not party to the settlement and the class action against them will continue. The class action suit was launched six years ago on behalf of miners suffering from silicosis, an incurable disease caused by inhaling silica dust from gold-bearing rocks. It is the first class action settlement in South Africa involving so many companies and claimants. Carina du Toit, a lawyer with the Legal Resources Centre, one of the law groups representing the workers, said: “The settlement is the product of commercial negotiation and compromise, but we believe this is a beneficial settlement.” The parties agreed the compromise settlement was preferable for all concerned rather than a lengthy and expensive litigation process, and would enable the claimants to receive compensation and relief for their conditions more quickly. The settlement still needs approval from the Johannesburg High Court before being implemented.

$400m silicosis class action agreed for South African gold miners

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