A South African mines company has agreed to delay unwinding its business while it deals with a dispute with miners over asbestos-related diseases.

This is a victory for common sense

Richard Spoor, lawyer

The company, Gencor, said it would postpone a shareholders' meeting scheduled for 2 October.

And it has agreed not to go ahead with plans to unwind the company before a court hearing in mid-November.

Lawyers representing 1,600 former South African miners dying from asbestos-related diseases have taken legal action against the company.

They fear that once the business is unwound, Gencor will cease to exist and it will not then have to pay compensation to former miners who worked in the asbestos mines in which the company had substantial holdings.

Justice

The court hearing will decide if Gencor can unwind before settling the claims against the business.

We want justice for South African miners, as asbestos victims in the UK have had

Mark Berry, Thompsons Solicitors

"This is a victory for common sense," said Richard Spoor, the lawyer for the asbestosis sufferers.

"Gencor's agreement gives everyone time to draw breath and for the courts to consider the issues properly.

"But we cannot wait beyond that," he added.

"Hermann Kubari, the first claimant and others suffering from incurable mesothelioma are dying.

"They need justice in their lifetime."

Denying liability

Mark Berry of Thompsons Solicitors, which has been supporting the case, said: "This is just the first step.

"We want justice for South African miners, as asbestos victims in the UK have had."

Gencor owned asbestos companies Gefco and Msauli from the early 1960s until it sold them in 1988.

It has denied any liability under South African law for any of the claims against it.

In a statement the company said: "If Gencor has a liability, including any liability for claims in respect of asbestos-related diseases, it will be provided for."