Historic Mine Shuts, Five Workers Feared Dead

(IDEX Online) - The historic Ekapa diamond mine, in Kimberley, South Africa, has closed with immediate effect - a week after five miners were trapped deep underground by a mud rush and water flood.

Rescue attempts have failed and the miners are now presumed to have died.

Ekapa had been mined continuously for the last 158 years. Ekapa Resources (the underground mining rights holder) and Ekapa Minerals (the surface mining rights holder) announced yesterday (25 February) that they were closing the mine and that both companies have filed for liquidation.

In a statement they said: "This decision follows a careful assessment which concluded that the company cannot continue to meet its financial obligations given the prolonged global diamond market downturn, exacerbated by the recent tragic incident."

A group of miners was able to escape the mud rush on 17 February, but five employees remained trapped almost 900 meters underground. Cameras subsequently lowered into the Du Toitspan shaft have found no signs of life.

Jahn Hohne, CEO of the parent company Ekapa Mining said: "Ekapa acknowledges the immense pain and uncertainty this situation has caused and extends its deepest condolences to the families, colleagues and loved ones of the missing miners."

He said repairs to the Du Toitspan shaft would be costly and could take up to 18 months, which was unachievable under current financial conditions.

The Ekapa disaster followed 18 months of "unprecedented pressure" on the diamond industry, he said due to reduced global demand, increased production of lower-cost synthetic diamonds, trade tariffs affecting key markets, and declining natural rough diamond prices.

File pic shows Ekapai mine.