Gencor settles mine claims
17/01/2006 10:38  - (SA)  

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Asbestosis fund: R16m paid

Johannesburg - Mining holding company Gencor(GMF) announced that it had reached a settlement agreement with the Bareki Tribal Authority and the Nkululeko Environmental and Development Group over the rehabilitation of certain areas of land in and around the Bute asbestos mine and Heuningvlei.

In July 2003, Gencor advised that the claimants had instituted their claims.

Gencor set aside an amount of R35m in cash as security for the claim.

The agreement was reached last week on Friday, between the claimants, Gencor and others including the minister of minerals and energy.

As part of the agreement, the claim against Gencor was withdrawn fully and finally, the claimants waived and abandoned unconditionally and irrevocably any claims against Gencor for rehabilitation in the Bute and Heuningvlei areas and no payment was or would be made by Gencor under the agreement and the security had fallen away.

In addition, the department of minerals and energy would undertake certain rehabilitation work in and around Bute and Heuningvlei.

Gencor said: "As the outstanding rehabilitation matters have now been resolved fully and finally, Gencor's board of directors will advise shareholders in the near future on the possibility of Gencor being voluntarily liquidated."