ConCourt ruling may open disease claims door, South Africa only four points above Zimbabwe, mine liquidation practice needs urgent reform

A Constitutional Court ruling in favour of a former AngloGold Ashanti worker in an occupational disease case has opened the door to legal claims against the mining industry. The ruling has enabled mineworkers to sue for health damages under common law. Read on page 14 of this edition of Mining Weekly of Thembekile Mankayi, who developed a lung disease while working at AngloGold Ashanti between 1979 and 1995, succeeding with a R2,6-million claim after he had been compensated under the Occupational Diseases in Mines and Works Act (ODIMWA).

The court had to decide on whether miners who had been compensated under the ODIMWA could claim compensation from their employers, or whether a section of the Compensation for Occupational Injuries and Diseases Act precluded common law claims. Mankayi, who died two days before the court ruling, was represented by attorney Richard Spoor, who says that mining companies now face potential liability associated with lung diseases in particular. Between 300 000 and 500 000 former mineworkers are said to suffer from these diseases.

The latest Fraser Institute survey shows that South Africa has not recovered from the slide in rankings in 2009. Read on page 15 of this edition of Mining Weekly of Webber Wentzel senior partner Peter Leon saying that South Africa’s low sixty-seventh ranking may have a negative impact on the North American roadshow that Mineral Resources Minister Susan Shabangu has conducted to woo investors to South Africa. “South Africa’s performance is not good news for the Minister and her delegation.

The aim of the visit was to encourage investment and to report on an improvement in legislation, while the survey clearly indicates to exploration companies that the legislation has either stayed the same or has become worse,” Leon adds. South Africa achieved only four ranking points above lowly positioned Zimbabwe and ten ranking points above the embattled Democratic Republic of Congo (DRC).

Ludicrous Liquidation

Three lessons can be learnt from the long-drawn-out Pamodzi Gold liquidation process that is destabilising mining on the East Rand and leading to death and destruction. The first is that the power of the Master of the High Court to appoint liquidators opaquely must end – the appointment of the liquidators must be done transparently.

The second lesson is that the High Court must not give extensions when bidders miss the funding deadline; deadline after deadline has not been met and the High Court is now allowing the process to extend for another five months. The third lesson is that the bids of accomplished miners must be taken more seriously than those of aspirant miners who are completely bereft of any mining record. South Africa’s use-it-or-lose-it principle is being honoured in the breach with this ludicrous liquidation.