Power struggle erupts over future of Kimberley diamond mine as flooding risk emerges

A court battle intended to save hundreds of jobs at Kimberley’s Ekapa diamond mine has triggered a new crisis, with provisional liquidators warning that its underground workings could begin flooding within 48 hours if Eskom disconnects the electricity supply. Ekapa Minerals and Ekapa Resources wereplaced in provisional liquidationon 3 March, following acatastrophic mud rushat the Du Toitspan Joint Shaft on 17 February. About 60 miners were underground when water, mud and debris inundated part of the workings.

Five miners were trapped about 890 metres below the surface and died. Their bodies were recovered during a weeks-long operation in March that reportedly cost tens of millions of rand. On 27 July, the Northern Cape High Court granted an application by the National Union of Metalworkers of South Africa (Numsa) to place Ekapa Minerals in business rescue, finding there was a reasonable prospect of saving the company.

The proposed restructuring envisages retaining around 500 jobs on a scaled-down operating model. The mine previously employed more than 1 000 people, while Numsa says more than 300 workers were laid off following the disaster. Marius van Tonder has been appointed interim business rescue practitioner.

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This week, the joint provisional liquidators issued a statement saying the mine faced renewed flooding if Eskom went ahead with a planned power cut on 4 August. Moneyweb has established that Eskom did not cut the power, and maintenance operations were continuing at the mine. Numsa says it initially approached management with a business rescue proposal in the interests of saving the company and jobs, but says this was rejected.

“Rushed liquidations disproportionately serve shareholders and directors while leaving workers destitute,” the union said in a statement. Numsa’s Northern Cape representative Andile Zitho told Moneyweb he found it curious that the warnings of renewed flooding emerged after the Northern Cape High Court placed the mine under business rescue, halting the liquidators’ planned asset auctions.

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