Anglo American PLC (LSE:AAL) shares were down in London and down more in Johannesburg after a South African high court granted permission to appeal an earlier ruling denying a huge class action lawsuit in Zambia.
The lead poisoning lawsuit by 140,000 women and children will be taken before the Supreme Court of Appeal of South Africa later this year against the group's Anglo American South Africa (AASA) subsidiary. Law firms Leigh Day and Mbuyisa Moleele are representing the claimants.
Their appeal had been thrown out in December, with certification of the class action dismissed, but on Friday the Johannesburg High Court has now granted permission to appeal this judgment.
Justice Leonie Wendell found that an appeal against her earlier judgment had "reasonable prospects of success on at least one ground of appeal" and that there were "compelling reasons to grant the appeal".
The lawsuit claims Kabwe was an Anglo American mine from 1925 to 1974.
Anglo points out that Kabwe was owned via an indirect minority shareholding of around 10% in the mine's operator, Zambia Broken Hill Development Company, today known as ZCCM. It says that AASA provided certain technical services to the mine, but did not wholly own or operate the mine at any stage.
The allegation is based on reports since the early 1970s from the mine's doctors showing children had died of lead poisoning and there were higher than usual blood lead levels in local communities.
The Claimants allege that on economic grounds, Anglo American failed to heed advice from international experts in 1970 that the topsoil should be replaced.
Anglo has pointed out that the mine was nationalised in 1971 and operated by ZCCM and its predecessor companies until 1994, when it was closed, although uncontrolled mining and processing have continued to the present day.
ZCCM has acknowledged responsibility for all historic liabilities relating to the Kabwe mine following nationalisation.
In a joint statement, Leigh Day partner Richard Meeran and Mbuyisa Moleele founding partner, Zanele Mbuyisa said: “Anglo American's arguments refuting its responsibility indicate a shocking indifference to the tremendous and ongoing harm caused to generations of the Kabwe communities by its operations.
"This is a concerning stance from a company that claims to be 're-imagining mining to improve people's lives' through its Future Start Mining initiative. It is also in stark contrast to the human rights principles to which Anglo American claims to subscribe, as set out in their group policies."
In its own stock exchange statement on Monday, Anglo said: "The grant of the right to appeal is simply a recognition by the High Court that an appeal to another court is a viable option for the claimants to follow in the South African legal process. It does not undermine the High Court decision that dismissed the application in December 2023.
"Anglo American will oppose any appeal that may follow. As Anglo American has stated throughout, it has every sympathy for the situation in Kabwe, but is not responsible for it.
"Anglo American has stated from the outset that this claim is entirely misconceived."