Silicosis trust distributes one-quarter of R400m settlement

19th January 2018 By: Natasha Odendaal - Creamer Media Senior Deputy Editor

A trust formed in 2016 to compensate former Anglo American South Africa and AngloGold Ashanti employees who suffer from silica-related illnesses has already distributed about R102-million of a R395-million settlement.

The Q(h)ubeka Trust was established in March 2016, following the successful conclusion of a lengthy compensation battle by attorneys Richard Meeran and Zanele Mbuyisa on behalf of 4 365 former mineworkers who may be suffering from silica-related occupational lung diseases.

Many of the former mineworkers from South Africa, Swaziland and Lesotho contracted silicosis while working for various mines owned by Anglo American South Africa and AngloGold Ashanti.

The trust has until April 2019 to complete medical assessments of all claimants and make the first tranche of compensation payments to qualifying claimants.

To date, about 2 350 of the 4 365 claimants have undergone the medical assessments, according to Q(h)ubeka Trust chairperson Dr Sophia Kisting-Cairncross.

As the majority of the claimants live in rural areas, the trust has partnered with a number of local healthcare service providers and is helping to train them in the diagnosis of pneumoconiosis.

The assessment results are sent to a panel of medical specialists for review and for a determination of each claimant’s eligibility for compensation.

Fewer than half of the claimants who have been assessed so far suffer from silicosis.

In addition to invalid contact details for claimants and difficulty in locating potential beneficiaries, the trust is facing challenges determining compensation eligibility and establishing that claimants worked for Anglo American South Africa- and AngloGold Ashanti-owned mines for at least two years.

Following the first tranche, the trust will make a second tranche of payments for the distribution of the remaining settlement funds that were not paid out in the first tranche to the qualifying claimants and the family members of qualifying deceased claimants.

The concluded compensation action is separate from the class action suit that is currently under way against various South African mining companies, but which also includes Anglo American and AngloGold.

Meanwhile, the ongoing silicosis and tuberculosis class action litigation against South African gold miners has been postponed, following a request by representative attorneys to the registrar of the Supreme Court of Appeal (SCA) to do so.

The SCA has approved the postponement.

The joint letter explains that good faith settlement negotiations between the Occupational Lung Disease Working Group and claimants’ legal representatives have reached an advanced stage.

In view of that, all parties considered it to be in the best interests of judicial economy and the efficient administration of justice that the matter, currently scheduled to be heard from March 19 to 23, be postponed.

The working group includes representatives of African Rainbow Minerals (ARM), Anglo American, AngloGold Ashanti, Gold Fields, Harmony and Sibanye Stillwater.

Richard Spoor, Abrahams Kiewietz and the Legal Resources Centre represent the claimants.

Some mining companies have already set aside funds for the settlement of the class action, with Harmony making provision for R917-million for the possible silicosis class action settlement.

ARM has set aside an amount of R330-million.