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Miners may face SA's largest damages case

Aug 21 2012 13:30
Reuters

Company Data

GOLD FIELDS LIMITED [JSE:GFI]

Last traded 69
Change 7
% Change 11
Cumulative volume 4022835
Market cap 0

Last Updated: 11-02-2016 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

HARMONY GOLD MINING COMPANY LIMITED [JSE:HAR]

Last traded 41
Change 4
% Change 10
Cumulative volume 4718635
Market cap 0

Last Updated: 11-02-2016 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

ANGLOGOLD ASHANTI LIMITED [JSE:ANG]

Last traded 177
Change 12
% Change 8
Cumulative volume 2989295
Market cap 0

Last Updated: 11-02-2016 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

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What is silicosis?

 

Cape Town - South Africa's leading gold miners are facing a potential lawsuit on behalf of thousands of workers who claim they contracted silicosis, a lung disease, through the companies' negligence.    

A South African lawyer filed the first papers on Tuesday against AngloGold Ashanti [JSE:ANG], Gold Fields [JSE:GFI] and Harmony Gold Mining Company [JSE:HAR], in a preliminary step to determine whether the court recognises the case as a class action.

“If the certification is granted we anticipate that this may be the largest damages suit in the history of this country, in the tens of billions of rand possibly,” lawyer Charles Abrahams, who represents more than 3 000 mostly former miners, said.

The mining companies had declined to comment in detail ahead of the filing. A spokesperson for Gold Fields said on Tuesday he would not comment, while officials at the other two firms were not immediately available.

The suit, which has little precedent in South African law, has its roots in a landmark ruling by the Constitutional Court a year ago that for the first time allowed lung-diseased miners to sue their employers for damages.

Silicosis is a disease that causes shortness of breath, a persistent cough and chest pains and makes people highly susceptible to tuberculosis, which kills. It has no known cure.

Abrahams said the claim was separate, but similar, to that of fellow lawyer, Richard Spoor, who represents several thousand more claimants. In March, Spoor said he would soon file his class action papers against the same mining companies cited by Abrahams.

The two cases could eventually be joined, said Abrahams.

Graham Briggs, the chief executive of Harmony, told Reuters earlier this year, the issue of silicosis was “a big topic” but he did not think it “class action material”.

Different conditions prevailed at different times in different mines, he said, and workers may have had more than one employer.

A successful suit could collectively cost mining companies billions of dollars, according to legal and industry experts.

The largest settlement to date by the mining industry in South Africa was $100m in 2003 in a case brought by Spoor against an asbestos company.  



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silicosis  |  mining

 
 
 

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