Hundreds of Ekapa Mine jobs could be saved. Numsa has welcomed a Northern Cape High Court ruling suspending the liquidation of Ekapa Minerals and placing the Kimberley company under business rescue. 

The union says the process creates an opportunity to restart operations and return workers to their jobs. The mine has faced severe financial pressure since a deadly mud rush at the Joint Shaft serving the Du Toitspan mines in February. 

Five mineworkers were trapped 890m underground after wet mud and water blocked the tunnel. The disaster contributed to the company’s provisional liquidation and the loss of more than 1,000 jobs. Numsa regional legal officer Tshepiso Mochabela said the union’s immediate priority is to return as many employees as possible to work.

“Our immediate priority is to ensure that as many people as possible get back to work. We also want to ensure that operations resume at the mine as soon as possible,” Mochabela said.

A proposed business rescue plan could initially retain about 500 jobs from the workforce of more than a thousand. Additional employees could return if operations stabilise and the company begins generating profits, according to the union.

The rescue process depends on R25m in post-commencement finance. Numsa says business rescue practitioners have assured the union that the required funding has been secured to support the proposed restart of operations.

Mochabela described the ruling as an important victory for organised labour. He said unions rarely approach the courts to oppose liquidation and fight for an alternative process aimed at protecting jobs and preserving a business.

Ekapa’s joint provisional liquidators have, however, warned of serious environmental and economic consequences if Eskom disconnects the mine over unpaid electricity bills. A power interruption would stop 114 boreholes and critical pumps that keep underground workings dry.

The liquidators say flooding could begin within 48 hours of the electricity supply being interrupted. Water could damage infrastructure and equipment and create a risk of groundwater contamination in and around the mining area.

They have also questioned whether the proposed rescue plan is commercially viable. Their concerns include high electricity costs, outstanding debt, and continued weakness in the international market for natural diamonds.

OFM News/Zenande Mpame sm

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