Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Anglo American has set aside US$101M to settle legal action from a group that allegedly contracted silicosis or tuberculosis as a result of having worked for various gold mining companies including some in which Anglo American was either a shareholder or provided various technical and administrative services.
Anglo American is one of 32 respondents to the consolidated class certification.
Last year, South Africa’s high court ruled that mine workers could claim damages for contracting silicosis. The defendants are appealing the ruling with a hearing planned for March 2018.
Anglo and the other respondents are negotiating with the affected stakeholders. The charge of US$101 million represents the company’s best guess as to the ultimate settlement.
Details of the charge are found on page 49 of the company’s 2017 interim financial results.
Creative Commons image of wall mural in South Africa from Guillaume Inconito
