/ 30 June 2003

Gencor pays R460m to settle asbestos claims

Former South African mining holding company Gencor on Monday announced that it had paid R460,5-million to various trusts as part of its asbestos claims settlement. Of the amount, R40-million was specifically held for rehabilitation claims.

Prior to the unbundling of Gencor’s Impala Platinum stake, Gencor met with representatives of the Department of Mineral and Energy Affairs and agreed, without any admission of liability, to the transfer of R35-million of the R40-million be set aside for rehabilitation claims, to a trust to be established and administered by the DME, in full and final settlement of any rehabilitation claims that the government may have against Gencor.

This agreement is subject to the approval of the trustees of the Asbestos Relief Trust.

Shortly before the unbundling became unconditional, Gencor received a claim for alleged rehabilitation from lawyers representing a tribal community. Gencor does not believe it is liable for any amounts under these claims.

In order to ensure the unbundling took place without interference, Gencor, without admission of liability, agreed with these claimants to hold aside an amount of R35-million of its cash resources remaining after the unbundling for this claim should it be proved to be valid, subject to Gencor’s rights to have this amount reduced or set aside by order of court.

Gencor will deal with this claim in the ordinary course of its business.

Gencor has now entered its final phase as a company and the directors are considering various proposals in relation to the winding down of the company. – I-Net Bridge