Anglo American South Africa (AASA) and AngloGold Ashanti have agreed to pay at least R464m in compensation to miners who allegedly contracted silicosis, a lung disease, whilst working on the mines of the companies.

In terms of the out of court agreement, the monies will be paid into an independent trust which will determine the eligibility of the miner’s claims. The agreement falls in the wake of some 4,400 stand-alone claims of which 1,200 brought against AngloGold. The matter was to be heard in court in April.

Mbuyisa Neale attorneys, a Johannesburg company that brought the claims said in a statement that the total amount payable was R500m. Anglo American and AngloGold would also fund the costs of the Trust and the medical evaluations…

Zanele Mbuyisa of Mbuyisa Neale said that continuing with the litigation, rather than settling “… would have meant a further substantial delay in receipt of compensation, which the claimants and their families cannot afford.”…

“We have sympathy for all miners who have contracted silicosis and believe that the agreement to settle this litigation is in the best interests of the plaintiffs, their families, AASA and its wider stakeholders,” said Andile Sangqu, executive head of AASA…