Another major company in South Africa heading for liquidation
The management of major diamond mining group, Ekapa Mining, has announced that the company has applied for liquidation.
The application follows tragedy at the mine, where a mud rush trapped five mineworkers approximately 890 metres underground a week ago.
The tragedy, coupled with a prolonged downturn in the global diamond market and a 55% decline in the price of rough diamonds since late 2025, had rendered the business no longer viable, it said.
The mine’s management announced that repairs to the affected shaft were estimated to take 10 to 18 months and would require a significant capital investment, which is not viable.
The decision has been taken to close and liquidate the mine.
The National Union of Metalworkers of South Africa (NUMSA) has strongly condemned the company’s actions.
The liquidation of Ekapa Mines holds significant economic consequences for the region and signals a permanent loss of a key industrial anchor.
Over 1,000 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 will impact a vast network of local businesses, creating a devastating ‘knock-on’ economic effect.
According to Willie Venter, Deputy General Secretary at Solidarity, this double tragedy constitutes a major blow to the community.
“Approximately 1,300 workers are now facing immediate unemployment. In addition, it is reported that many workers have not yet received their salaries for February 2026,” he said.
“The possible liquidation not only affects employees – it is becoming a community crisis. In a region such as the Northern Cape, and specifically Kimberley, alternative employment opportunities are limited. The impact on families and the wider community will be enormous.”
Venter said that Solidarity will ensure that its members are supported throughout the liquidation process, should it proceed.
“However, we hope that an alternative solution can be found to keep the mine operational for the sake of the workers and the community, despite the tragic accident and market pressures.”
South Africa has been hit with several major liquidations over the past year, with prominent and historic brands like Murray & Roberts and Tongaat-Hulett among those in trouble.
Murray & Roberts Holdings (MRH) entered liquidation proceedings in 2025, with the subsidiary brand Murray & Roberts Limited (MRL) being sold off in business rescue.
Tongaat-Hulett, meanwhile, applied for liquidation, but its future is more hopeful with the Department of Trade, Industry and Competition stepping in to save jobs and secure the sugar sector.
South Africa experienced over 1,500 liquidations in 2025.
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