Prominent South African mining company applies for liquidation

Ekapa Mine in Kimberley has applied for liquidation after being unable to meet its financial obligations following the mud rush that trapped five workers a week ago. 

After more than a week of rescue efforts and no signs of life, the workers have been presumed dead.

The operation has now officially shifted from a rescue mission to a recovery process. This involves dewatering the shaft and loading mud to retrieve the bodies.

Since the incident first came to light, Ekapa Mines faced backlash over continuing mining operations alongside rescue efforts.

The South African Federation of Trade Unions (SAFTU) expressed criticism of mine management’s decision and of the limited communication about the efforts.

SAFTU General Secretary Zwelinzima Vavi called for the suspension of all operations and an independent investigation.

“Management has kept quiet the whole of the day, but it is increasing, or it is proceeding with the profits, which signals to the family that, sorry, we don’t care much about your loved ones,” he said.

Ekapa Mines CEO Jahn Hohne reported that operations at the mining site have not yet commenced, as Ekapa prioritises the retrieval of the mine workers.

“Our activities continue unabated despite the passing of time. The safety of our employees and the effectiveness of the rescue operation remain our highest priority,” Hohne said.

Following the disaster, Ekapa Minerals and Ekapa Resources applied to the High Court for liquidation, effectively halting the entire mining operation. 

Mine management announced the liquidation in a statement, citing mud rush damage and a global diamond market downturn as making it impossible to meet financial obligations.

The suspension of operations at Du Toit’s Pan in Kimberley signals the end of a 158-year-old mining era in the region.

The National Union of Metalworkers of South Africa (NUMSA) has strongly condemned the company’s actions.

They particularly criticised the decision to file for bankruptcy while the miners’ bodies are still trapped underground.

The economic consequences

Since 2022, natural diamond prices have fallen by over 30% due to the surging popularity of lab-grown diamonds, weak Chinese demand, and global economic pressures.

After a continued downturn of 12% in 2025, De Beers reported a loss of $511 million (R8.3 billion) for the 2025 financial year.

The liquidation of Ekapa Mines holds significant economic consequences for the region and signals a permanent loss of a key industrial anchor.

Approximately 1,000 to 1,200 workers are expected to lose their jobs due to the mine’s closure.

The mine has been a central pillar of Kimberley’s economy for 158 years. Its closure impacts a vast network of local businesses, creating a devastating ‘knock-on’ economic effect.

Impacted businesses include small engineering firms, transport operators, equipment suppliers and security companies.

When including contractors and service providers, the total number is estimated to exceed 3,500.

As of February 2026, the Northern Cape has an official employment rate of 27.1%. The liquidation threatens to immediately reverse the province’s labour market gains.

Prior to the mud rush incident, Ekapa had to lay off roughly 380 workers in September 2025. According to NUMSA, these workers have not yet received their due pay. 

The workers reportedly received only a portion of their pay from previously deducted funds rather than their full salary.

A Section 189 retrenchment application and a Temporary Employer Relief Scheme application were initiated in 2025 but have remained unsuccessful.

Additionally, approximately 90 workers were dismissed for participating in a strike that the company deemed unprotected. NUMSA is currently challenging this in the Labour Court.

The union expressed concern that the liquidation may be used to bypass existing labour disputes and financial obligations to the laid-off employees.

This article was written by Zané Steyn.