Home South African Mineworkers and their families receive first payout of multibillion-rand settlement

Mineworkers and their families receive first payout of multibillion-rand settlement

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The first billion of a R5 billion settlement agreement for miners and their families has been paid to over 11,000 eligible silicosis and tuberculosis patients.

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THE FIRST billion of a R5 billion settlement agreement for mineworkers and their families has been paid to over 11,000 eligible silicosis and tuberculosis patients.

The Tshiamiso Trust, which was established the same year, launched the action in 2020.

The trust’s acting chief executive officer, Lusanda Jiya, said that after two years of the trust officially accepting claim lodgements, the first billion rand paid out to over 11,000 families is just the beginning.

“We know that there are many frustrations, and we know that no compensation will ever be enough to undo the suffering endured by mineworkers and their families. However, we are committed to delivering on our mandate and ensuring that every family that is eligible for compensation receives it,” said Jiya.

Jiya said that trusts are limited both in terms of the time in which they can operate and the extent to which they can assist those seeking compensation.

“The Tshiamiso Trust has a lifespan of 12 years, ending in February 2031. It cannot change the compensation system, and it cannot help people who do not meet the criteria for compensation. What it can and will do is spend the next eight years using the trust as a tool to deliver benefits to as many qualifying ex-mineworkers as possible by empowering claimants and potential claimants with the correct information and servicing them in the best way possible, within the constraints of the trust deed.

“Unfortunately, the eligibility criteria dictated by the Trust Deed results in the majority of claims being rejected for medical reasons alone, and many claims, especially for deceased mineworkers, are taking far longer to process than we’d like,” she said.

The eligibility criteria include, among others, that the mineworker must have performed risky work at one of the qualifying gold mines between March 12, 1965, and December 10, 2019 (keep in mind that some mines changed ownership during that time and are only considered during the periods when they were owned by the participating mining companies); for living mineworkers, they must have permanent lung damage from silicosis or TB that they contracted from doing risky work at these mines; and for deceased mineworkers, there must be evidence that they died from TB within a year of leaving the mine (if the mineworker died before 10 December 2019) or that they had silicosis or died from silicosis if they died before 10 December 2019.

The once-off compensation amounts were updated in February 2023 in line with the CPI and range from a little over R10,000 to just under R534,000, with most claims paid to date being around R74,000 on average.

“The maximum amount payable for each of the 10 compensation classes may be reduced based on risk work done on non-qualifying mines or outside of the qualifying periods, including if the qualifying gold mine changed ownership between 1965 and 2019. Over 11,000 claim lodgements have been received to date, through offices in South Africa, Lesotho, Botswana, eSwatini, and Mozambique. The Trust is working with stakeholders in these countries and others to mobilise its efforts and expand operations,” read the trust statement.

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