Court Rejects Liquidation Plea after Mine Tragedy
April 23, 26
(IDEX Online) - A court in South Africa has turned down an application by owners of the Ekapa diamond mine - where five workers died in a mud rush in February - for immediate liquidation of the business.
The Northern Cape High Court in Kimberley ruled instead that the provisional liquidation should be extended to 30 October.
The ruling, on 17 April 2026, follows pressure from NUMSA (National Union of Metalworkers of South Africa) and provides more time for a possible business rescue.
Around 1,200 workers have lost their jobs since the tragedy and many have not been paid since last November.
Owners Ekapa Mining wanted to wind up the company immediately, allowing a liquidator to sell assets efficiently without ongoing liabilities.
They say repairs to the mine's Du Toitspan shaft, where the mud rush happened, would be costly and could take up to 18 months, which was unachievable after "unprecedented pressure" on the diamond industry.
Ekapa had been mined continuously for 158 years.
File pic shows Ekapa mine.