Two agreements have been struck to settle all claims involving asbestosis against mining group Gencor for a total amount of R460,5-mllion, Gencor announced on Thursday.
This paved the way for the unhindered unbundling of all the group’s shares in Impala Platinum Holdings (Implats), it said in a statement.
About 13 500 people who claim to have contracted ailments while working on or living near asbestos mines in which Gencor had a stake are to benefit from the agreements. Without any admission of liability, Gencor would pay R378-million into an Asbestos Relief Trust which would pay compensation to all people able to demonstrate they contracted an asbestos-related disease from mines owned and operated by companies in which Gencor had an interest.
These companies — the Griqualand Exploration and Finance Company (Gefco) and Msauli Asbes Beperk — would make additional contributions to the trust. They would pay an amount equal to 50% of their net asset value.
Another R40-million paid by Gencor would be retained in a separate trust account for three years to cover any potential rehabilitation claims. After the three years, the balance of the R40-million would be paid over to the relief trust.
Gencor would also pay R42,5-million to about 7 500 claimants who sued British mining company Cape plc in the United Kingdom. Gencor is now a co-defendant in those proceedings. The claimants in that matter would not be eligible to claim from the relief trust.
Gencor once held a controlling interest in Gefco, which bought three Cape-owned subsidiaries in 1981 after Cape moved out of South Africa.
The full amount of R460,5-million would become payable one day after Gencor’s shares in Implats had been distributed to Gencor shareholders, the statement said.
”The settlement amounts will be paid out of Gencor’s existing cash resources of R409-million and a portion of the cash generated by dividends received from its Implats shareholding.”
Gencor chairman Attie du Plessis said the group would convene a meeting as soon as possible to consider the proposed unbundling of its 46% shareholding in Implats. It aims to complete the process by the end of June. ”Payment of the settlement amounts is conditional on the unbundling being completed in every respect. If the unbundling is impeded in any way, Gencor is entitled to declare all agreements void.”
The unbundling was to have been finalised last year, but was interrupted when asbestos claimants went to court, contending Gencor should not be allowed to proceed unless it made adequate provision for their claims. The amount then exceeded R2-billion.
Judgement in the matter was reserved in the Johannesburg High Court in December. The agreements settled all claims before that court, Gencor said.
The trust deed for the relief fund was being lodged with the master of the high court, Du Plessis said. The trustees should be able to start payment of compensation within about six months. ”I regard the outcome of the process to be in the best interests not only of Gencor and its shareholders, but also of the claimants and it is consistent with our approach to be reasonable, responsible and prudent,” Du Plessis said. – Sapa