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Gold mining companies' broken promises results in unprecedented legal action

by , 16 June 2016
Gold mining companies' broken promises results in unprecedented legal action
Every year, between 1,500 and 2,000 miners apply for compensation from mining companies for lung diseases like silicosis and tuberculosis.

These diseases are direct a result of the mine workers coming into contact with dangerous chemicals in the mines.

In 2003, the gold mining industry promised that by 2013, there would be no new cases of silicosis among workers exposed for the first time after 2008.

But three years after the 2013 deadline, this promise has proved to be nothing more than hot air.

Local mining companies continue to expose workers to dangerous chemicals and are now facing imminent legal action.

This means that you need to be careful what mining companies you choose to invest in right now.

 

The scale of this class action lawsuit is something that’s never before seen in South Africa

 
Francois Joubert, Portfolio Manager of the South African Investor says, that because of the dangerous mining environment, there’s trouble brewing for these gold mining companies that have put their employees in direct danger of contracting a variety of respiratory infections.
 
By the 13th of May 2016 a landmark legal decision was made by Phineas Mojapelo, the deputy president of the High Court in Johannesburg.
 
The target was the gold mining industry and the court has ruled in favour of a class action lawsuit against 32 mining companies representing 82 separate mines.
 
According to Francois, these gold stock companies are being sued for as much as R54 billion. Nothing like this has ever happened in South Africa before and it will go down in history as the biggest class action lawsuit ever to happen in South Africa.  
 

Be careful what gold miners you’re investing in

 
Due to the massive scale of this lawsuit, there are certain mining shares that are going to take a beating. Even though the lawsuit is still in its infancy, Francois says you need to make sure that you avoid certain mining shares at all costs.
 
In this month's issue of The South African Investor, Francois will show you exactly what shares to avoid at all costs and the four gold stocks that will come out unscathed. 



Gold mining companies' broken promises results in unprecedented legal action
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