KIMBERLEY – The National Union of Mineworkers (NUM) and the National Union of Metalworkers of South Africa (Numsa) have launched an attack on the management of Ekapa Mine following the company’s successful application for provisional liquidation while search operations continue for five missing workers underground.
On 3 March, the High Court in Kimberley placed both Ekapa Minerals (Pty) Ltd and Ekapa Resources (Pty) Ltd under provisional liquidation. The decision has been met with fierce resistance from labour representatives who characterise the move as a “deliberate poverty war” and a callous abandonment of employees during a period of tragedy.
The current crisis was precipitated by a devastating mud rush disaster that left five workers trapped and now presumed deceased.
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NUM Northern Cape regional organiser Joe Legadimane described the mine’s safety culture as “rotten to the core,” alleging that the disaster was a result of “profit-driven thinking at all costs”.
Legadimane claimed that the specific area where the workers went missing had been shuttered by previous owner De Beers as far back as 2005 because it was deemed “high-risk, dangerous, and costly”. The union alleges that Ekapa’s decision to reopen these levels directly led to the preventable disaster.
Numsa general secretary Irvin Jim expressed deep dismay that the liquidation was pursued ex parte before the bodies of the trapped miners could even be retrieved. “Such an action is profoundly insensitive to the grieving families of the deceased and demonstrates a callous disregard for the broader workforce,” Jim stated.
The unions further allege a total breakdown in labour relations and financial responsibility. Workers reportedly did not receive their February 2026 salaries, and many have faced five months of non-payment. With over 1 000 jobs at stake, unions warn of a “rippling effect” of poverty across the district.
Beyond the immediate job losses, the union highlighted a failure by the company to adhere to the Skills Development Act and the Mining Charter. The union alleges the company failed to implement Individual Development Programmes (IDP) as required by the Social and Labour Plan. By failing to upskill workers for life “beyond mining,” the company has left employees with nothing to fall back on economically.
Management has rejected claims that liquidation is an attempt to evade accountability, stating that the search and recovery operations for the five missing workers are ongoing, subject to safety conditions.
NUMSA has formally proposed that the company opt for Business Rescue instead of liquidation to safeguard jobs, a proposal they say the company has rejected.
‘Severe market downturn in global diamond industry’
In response to the allegations, Ekapa Mining pointed to a “severe market downturn” in the global natural diamond industry over the past two years. The company argued that the recent underground disaster rendered a key production zone inaccessible, further compromising the mine’s viability.
Management has rejected claims that liquidation is an attempt to evade accountability, stating that the search and recovery operations for the five missing workers are ongoing, subject to safety conditions.
The company maintains it has operated within South African labour legislation and that employee claims for outstanding pay will be handled by a court-appointed liquidator. Ekapa claims it previously undertook restructuring and cost-containment measures in consultation with unions to preserve jobs as long as possible.
In its court application, the company claims the most critical reason for seeking provisional (rather than final) liquidation is to prevent the company’s valuable mining right from automatically lapsing under section 56(d) of the Mineral and Petroleum Resources Development Act (MPRDA). By preserving this right, a liquidator can attempt to sell the business as a “going concern”.
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Ekapa Minerals believes that provisional liquidation is the best option for all stakeholders, including staff, because the company has reached a point of commercial insolvency where continued operation is no longer sustainable or legally responsible.
The company argues that a sale to a new investor is the most effective way to ensure that jobs are retained and that mining operations can eventually recommence, mitigating the impact on the broader Kimberley community.
Management argues that if they were to continue trading in their current state, debts would continue to mount and assets would deteriorate, which would ultimately decrease the amount of money available to pay creditors and staff.
Liquidation provides a fair and orderly process for distributing assets to the ‘general body of creditors’.
In communications with staff, the CEO stated that employees are the “first priority” in the liquidation process, followed by “bank money” (previously withheld salary portions).
The company maintains that a liquidator is needed urgently to take control of the estate and assist in the ongoing rescue efforts for the five trapped mineworkers. The affidavit stresses that these recovery efforts remain the highest priority, and a liquidator provides the independent oversight needed to manage these affairs during the crisis.
The “catastrophic” mud rush on February 17 destroyed the progress of a previous turnaround strategy. The company lacks the millions of rands required to remediate the underground damage and return to production. Without an immediate liquidator to manage the remaining cash and assets, the company cannot even meet its immediate obligations, such as electricity payments to Eskom or February salaries.
