Ekapa’s 158-year-old Kimberley underground diamond mine could flood within days because a dispute over its future has left the operation without a clear source of funding to keep critical pumps running.
The question now confronting Kimberley is whether the mine will be rescued through Business Rescue or whether a legal and financial deadlock will allow water to destroy infrastructure that could have supported its recovery.
Eskom power cut could spell disaster
The Joint Provisional Liquidators of Ekapa Resources warned that an Eskom power cut could stop the pumps keeping the underground workings dry, triggering flooding within 48 hours.
“We do not want to be the executioners of history,” the liquidators said. “Kimberley faces the permanent loss of a major employer, critical mining infrastructure and a manageable closure process.”
They warned that without electricity, “114 boreholes and critical shaft pumps will stop operating”, leaving underground workings vulnerable to flooding and placing equipment beyond recovery.
Numsa has applied for business rescue
NUMSA, representing 369 employees, successfully applied for business rescue, arguing the mine still has valuable infrastructure and potential money available from related entities.
NUMSA argued that about R400 million in recoverable receivables could help restart operations and preserve about 500 jobs.
But the liquidators disagree.
They argue the rescue proposal depends on unrealistic assumptions because the surface operations cannot survive financially without access to higher-grade underground diamonds.
The liquidators said the old surface dumps produce only four to five carats per 100 tonnes, while the processing plant requires about R30-million a month in electricity costs.
“The proposed focus on surface tailings is not commercially sustainable,” they argued, saying underground diamonds could become inaccessible if flooding occurs.
Companies legally separate but operationally dependent
The dispute has been complicated because Ekapa’s companies are legally separate but operationally dependent.
Ekapa Minerals, which employs workers and runs surface operations, is in Business Rescue. Ekapa Resources, which owns the underground mining rights and assets, remains in provisional liquidation.
The liquidators said this created a funding crisis because they remain responsible for protecting the mine but cannot sell assets needed to pay for maintenance.
The court previously found that Business Rescue represented a “final opportunity to protect the economic and social interests of the Kimberley community”.
‘Time has run out’
But the liquidators argue time has run out.
They say care and maintenance cost approximately R400 000 a day and that the delays caused by legal proceedings exhausted remaining cash reserves.
The environmental consequences could outlast the legal battle.
The liquidators warned that flooding could carry oil, diesel, copper and plastics underground into groundwater systems used by surrounding agricultural areas.
“This would not be a managed and compliant closure,” they said. “It would be an uncontrolled environmental disaster.”
- Ekapa’s 158-year-old Kimberley underground diamond mine faces flooding within 48 hours due to a dispute over funding critical pumps and a potential Eskom power cut.
- Joint Provisional Liquidators warn that without electricity, 114 boreholes and shaft pumps will stop, risking permanent loss of infrastructure and jobs.
- NUMSA, representing 369 employees, applied for business rescue citing potential funds of approximately R400 million and preservation of 500 jobs, but liquidators dispute the feasibility based on financial sustainability.
- Ekapa’s companies are legally separate but operationally dependent, with Ekapa Minerals in business rescue and Ekapa Resources in provisional liquidation, causing a funding crisis for mine maintenance.
- Liquidators state care and maintenance cost about R400,000 daily, with legal delays depleting cash reserves, and warn that flooding may cause an uncontrolled environmental disaster affecting local groundwater.
