Auction Planned for Closed Ekapa Mine

(IDEX Online) - Provisional liquidators are trying to sell the troubled Ekapa mine, in South Africa, where operations ceased after five workers died in a mud rush in February.

They aim to sell core assets and mining rights via a formal auction, targeting domestic and international buyers who could restart operations within 90 days.

Richard Pollock on behalf of the joint provisional liquidators, said: "We are under no illusion as to the difficulty of securing a suitable buyer, given the current pressures in the global diamond market, including the growing prevalence of synthetic diamonds in industrial applications, together with the substantial capital required to restore operations."

But they expressed optimism that investors pursuing jewelry-grade gem opportunities may recognize the potential of the asset.

The operation encompasses approximately 140 million tonnes of tailings mineral resources, a 9.6-million-tonne-per-year processing plant, and three kimberlite pipes: Du Toits Pan, Bultfontein, and Wesselton. 

The Kimberley-based mine had been mined continuously for 158 years until the tragedy.

Owners Ekapa Mining shut it down immediately, saying the cost of repairing the Du Toitspan shaft would be prohibitive.

It said it wanted to wind up Ekapa Resources (the underground mining rights holder) and Ekapa Minerals (the surface mining rights holder) as soon as possible.

But a court rejected that application and ruled instead that the liquidation should be provisional.

File pic of operations at Ekapa mine.