South African diamond producer Ekapa Mining has filed for liquidation following a fatal mud rush at its underground operation in Kimberley — a city long regarded as the cradle of the modern diamond industry.
The incident occurred on 17 February at Ekapa’s underground mine, approximately 800 metres below surface, when a sudden inrush of water and mud flooded part of the workings, cutting off access to the lowest mining level. Five miners were trapped in the collapse. Despite extensive rescue efforts, including drilling and specialist geotechnical assessments, the company confirmed that the affected tunnels were completely filled with mud and water, making survival impossible.
Kimberley: Birthplace of the Diamond Industry
The tragedy has unfolded in a region of profound historical significance to the global diamond trade. Kimberley rose to prominence following the discovery of diamonds in 1867 along the banks of the Orange River. The subsequent discovery of the Kimberley pipe in 1871 led to the development of the famous Big Hole — one of the largest hand-dug excavations in the world.
These discoveries ultimately gave rise to De Beers, which consolidated claims in the area in the late nineteenth century and went on to shape the modern diamond industry. Kimberley’s deep kimberlite pipes and extensive alluvial deposits have been mined for over a century, transitioning from open-pit extraction to increasingly complex underground operations as surface resources were depleted.
Ekapa has operated in this historically rich but technically challenging environment, reprocessing tailings and mining remnant deposits left from earlier large-scale operations. Such activities, while economically viable, can involve heightened geotechnical and hydrogeological risks, particularly in ageing underground workings.
Financial Pressures Amid Market Downturn
In a statement, Ekapa’s owners — Ekapa Resources and Ekapa Minerals — announced the immediate closure of the affected mine and confirmed that an application had been made to place the company into liquidation.
The decision followed an internal review which concluded that, in light of the prolonged global diamond market downturn and the operational impact of the tragedy, the company could no longer meet its financial obligations. The collapse comes during one of the most sustained contractions in rough diamond demand in recent years, with producers across southern Africa facing price pressure, reduced sales volumes, and tightened liquidity.
Mzila Mthenjane, CEO of the Minerals Council South Africa, stated:
“Our immediate focus is to offer support to Ekapa’s management, the affected operation, its employees, and their families. Finding the five people who are reported missing in the mud rush is the priority.”
The African National Congress (ANC) Parliament Study Group on Mineral and Petroleum Resources has begun examining the incident and urged Ekapa to lower underground water levels and complete search and recovery efforts without delay. The group noted that the event underscores the persistent risks faced by mine workers operating in deep and complex geological environments.
A Sobering Reminder
The liquidation of Ekapa marks a difficult chapter in Kimberley’s long diamond-mining history — a history that has shaped global gemmology, valuation standards, and diamond supply chains for more than 150 years. For the wider industry, including grading laboratories and trade bodies, the tragedy serves as a sobering reminder that behind every polished stone lies a chain of extraction that can involve significant human and operational risk.
As investigations continue, the focus remains on recovery efforts and support for the families of the five miners, while the broader diamond sector contends with both structural market challenges and the enduring responsibilities of safe, sustainable production.
Source: DCLA
