The South African government would not force the British multinational Cape PLc to clean up old asbestos mines, the Department of Minerals and Energy said on Thursday.
The department said the government entered into an agreement with Cape PLc to reimburse people who claimed damages from the company after developing asbestos-related diseases (ARD).
”Due to the fact that for the past years government had already started rehabilitating the derelict asbestos mines, government has opted to have Cape PLc use their funds to compensate the victims most whom are poor, unemployed and of bad state of health,” the department said in a statement.
To secure the payment of money to these people, Minerals and Energy Minister Phumzile Mlambo-Ngcuka signed a letter of undertaking with Cape PLc and the claimants on Monday.
In terms of this agreement, government would set up a Trust fund to administer the money and to make it available to the people suffering from asbestos-related diseases. Officials from the Northern Cape and Northern Province (Limpopo) would be appointed as trustees.
”The main objective will be to promote the communal interests of the claimants and any future applicants suffering from ARD in South Africa or their dependants or estates as a result of exposure to asbestos in relation to the Cape operations.”
The money would be invested and people would be able to apply to the Trust for financial assistance.
The government also kept the option open to allow for future claims against Cape PLc.
Cape PLc last year agreed to pay asbestosis victims UK21-million (about R300-million), provided the South African government waive its right to sue the company for the cost of rehabilitating the environment.
The mining company agreed to a settlement in December last year with victims of asbestos related illnesses seeking compensation in the London High Court.
The Minerals and Energy Department said it was already rehabilitating asbestos dumps and old mines. Fifty-three had been rehabilitated in South Africa since 1986 at a cost of R55-million.
A further 68 identified asbestos mines and dumps had still to be treated, and this was expected to cost a further R150-million. – Sapa