Chamber of Mines of South Africa v The Compensation Commissioner for Occupational Diseases and Others

The Occupational Diseases in Mines and Works Act 78 of 1973 established the Mines and Works Compensation Fund to compensate mine and works employees who contract occupational diseases. The fund is financed mainly through levies imposed by the Compensation Commissioner on owners of controlled mines and works. An actuarial valuation as at 31 December 2003 revealed a deficit of approximately R610 million in the fund. Acting on actuarial advice, the Commissioner decided to increase levies over 15 years to eliminate the deficit. Members of the Chamber of Mines accepted responsibility for part of the deficit relating to current workers but disputed the Commissioner’s power to recover the full deficit from mine owners. The Chamber applied to the North Gauteng High Court for declaratory relief, contending that levies could not lawfully be imposed to recover deficits attributable to former workers or determined otherwise than on a mine-specific risk basis. The High Court dismissed the application, and the Chamber appealed to the Supreme Court of Appeal.

The appeal was dismissed. The appellant was ordered to pay the costs of the first and fourth respondents, including the costs of two counsel.

The case clarifies the funding structure of the Mines and Works Compensation Fund and confirms the power of the Compensation Commissioner to levy mine owners to eliminate actuarial deficits in the Mines Account. It affirms that liability for occupational disease compensation extends beyond current employees and that the State is not a general backstop for deficits in the compensation fund. The judgment provides authoritative guidance on the interpretation of the Occupational Diseases in Mines and Works Act and the principles governing statutory compensation schemes.