South African miners suing British building materials firm Cape over asbestos-related diseases may reach a settlement worth �25m, their lawyers said.

About 7,000 South Africans are seeking compensation from Cape, which mined asbestos in South Africa during the apartheid era.

In a landmark judgement, the law lords last year granted them the right to sue UK-based Cape in the British courts.

But now it seems the claimants may settle out of court because of fears that Cape is so weak financially it would be unable to pay up after losing a court case.

'Substantially less'

Their lawyers said the proposed settlement is "substantially less than the claimants may expect to receive after a trial, if Cape could have afforded to pay".

"But [it] should meet the claimants' objective of obtaining meaningful compensation," said law firm Leigh, Day & Co in a statement.

It criticised Cape's conduct, alleging the company had set aside �8.3m to pay its lawyers "but has set aside nothing to pay the claimants if it loses".

Deadly illnesses

The miners are claiming compensation for diseases they believe they contracted while working for Cape between 1930 and 1979 when the firm was mining asbestos in the northern Cape and other northern provinces of South Africa.

The claimants say they contracted diseases such as asbestosis and Mesothelioma - a form of cancer.

The trial is scheduled to begin in April 2002.

MPs back miners

Thirty-seven members of the British parliament have signed a motion calling on Cape to reach a just and equitable settlement swiftly, said Leigh, Day & Co.

"About 300 claimants have died uncompensated since the case started, and many more will die before the conclusion of the case," the law firm said.

Five law lords in London ruled that the miners could be denied justice in South Africa because of a lack of developed procedures for such a potentially protracted group action.

A settlement of �25m would be worth about �3,500 per claimant.