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A recent settlement between miners and Anglo American could be a precedent as the gold industry prepares for a looming silicosis class action suit.
Despite being a landmark case, the confidential nature of a recent settlement between Anglo American and silicosis sufferers means there is little legal precedent for future cases, at least in terms of financial compensation.
But the agreement has other implications: as the number of silicosis damages claims against the gold mining industry piles up, and in the face of a looming class action suit, out-of-court settlements could become the norm as mining companies try to avoid bank-breaking court rulings.
In the weeks to follow, the high court in Johannesburg will decide whether to collate three class action claims against 30 of South Africa’s gold mines.
This comes on the back of a landmark settlement between Anglo American and 23 silicosis sufferers, seven of whom died waiting for the case to be finalised. Their claim was instituted in 2004 and was due to go to arbitration in 2014.
The settlement is part of several so-called “test cases” underway on behalf of silicosis-suffering miners. They are represented by the Legal Resources Centre and UK-based law firm, Leigh Day, with funding from Legal Aid South Africa.
The miners in the class action suits are being represented by the Legal Resources Centre, Abrahams Kiewietz Incorporated and Richard Spoor Attorneys.
The teams estimate that, if the application to consolidate the claims is successful, “conservatively” between 100 000 and 200 000 miners could be involved.
Early retirement
The mining companies listed as respondents in the matter include Harmony Gold, Anglo American, African Rainbow Minerals and Gold Fields.
Separately, at least 60 individual silicosis claims are pending against large gold mining companies. One instance involves a 35-year-old miner whose silicosis is so advanced he was forced into early retirement. He is suing two mining companies for R25-million.
Described by lawyers as “extremely skilled”, the machine operator worked at the two companies for a total of 12 years. He was forced to turn down a job on a gold mine in Tanzania because of his disease, essentially losing 20 years of work. This job would have earned him more than R1-million per annum.
A lawyer close to the class action suit told the Mail & Guardian the mining industry cannot afford to lose even one such individual case – a ruling in open court would set a precedent for the silicosis litigation that would cost it billions.
For the rest of this article, click here: http://mg.co.za/article/2013-10-01-silicosis-claims-and-the-gold-mines-to-settle-or-not