Wage negotiations may have concluded but South Africa’s gold sector still faces a number of challenges, not least of which is a looming class action suit.
GRONINGEN (MINEWEB) – Having only barely dispensed with the plummeting gold price, increasingly demanding shareholders and some of the tensest wage negotiations in memory, the South Africa’s gold producers were probably hoping for a little respite. But, instead, find themselves staring at the looming presence of a silicosis class action suit that seems to be growing inexorably larger with each passing month.
Right now, there are three separate class action matters pending against the country’s gold miners but, the three teams of lawyers have just applied to the courts to consolidate these various claims into a single one that will be defended by 31 companies, which include all of the country’s gold miners and their various operating entities as well as Anglo American South Africa and African Rainbow Minerals, who no longer operate gold mines but did so when some of the claimants contracted the lung disease in question.
It should be noted that Anglo American SA announced yesterday it has just settled 23 silicosis claims brought against it for an undisclosed sum and no admission of liability.