South African mine holding company Gencor (GMF) and asbestos mining claimants could reach a settlement agreement by week end or at the latest the end of March, said Richard Spoor, a lawyer from legal firm Ntuli, Noble & Spoor, representing the claimants.
From the time the agreement is struck, it is likely to take Gencor at least six weeks and up to two months before the company can unbundle its 46% stake in Impala Platinum (IMP).
“If we don’t get an agreement by the end of March, we will have to go back to court to get a settlement there,” Spoor said.
“We are optimistic that the settlement negotiations will be completed shortly. The parties are engaged in sophisticated negotiations and they are dealing with a novel problem, involving the interests of many different stakeholders. The Gencor board will continue to act expeditiously but in the best interests of the company and its shareholders,” said Gencor in a statement.
On February 3, the asbestos claimants accepted a R460-million settlement offer from Gencor. Progress in reaching agreement with Gencor has been slow as there are a number of sticking points and Gencor is trying to cover all possible claims in
one agreement, Spoor said.
“Gencor is attempting to close every gap and hole in the agreement. However, there needs to be a balance struck between legal certainty and the need to speedily expedite the matter,” Spoor said.
The claimants in the Gencor case were allegedly exposed to asbestos from the operations owned by the Griqualand Exploration and Finance Corporation
(Gefco). Gencor held a controlling interest in Gefco from 1963 to 1989.
The principle diseases that result from asbestos mining are lung cancer, asbestosis, mesothelioma and pleura disease. – I-Net Bridge