The joint provisional liquidators of Ekapa Minerals and Ekapa Resources have launched a formal process to sell the Ekapa Diamond Mine, targeting both domestic and international investors, as efforts intensify to preserve the operation as a going concern.

Located in Kimberley, the mine is a fully permitted asset comprising both surface and underground mining operations. It includes about 140-million tonnes of tailings mineral resources, a 9.6-million-tonne-a-year processing plant and three kimberlite pipes – Du Toits Pan, Bultfontein and Wesselton – which form part of the well-known “Famous Five” cluster.

The plant and surface infrastructure are well maintained and the Bultfontein and Wesselton shafts could potentially be brought back into operation relatively quickly should market conditions improve, the provisional liquidators note.

The sale will be conducted through a jointly mandated auction process. Prospective investors will have the opportunity to acquire the core assets and mining rights and potentially resume operations within a defined 90-day window or, alternatively, reposition the asset as part of a longer-term strategic approach.

The joint provisional liquidators stated that preserving the mine remains a central objective. Richard Pollock, on behalf of the joint provisional liquidators, notes that, “From our first on-site engagement, we were aligned that every effort should be made to determine whether the mine can be saved, in part or in whole. This remains a priority outcome that would benefit creditors, employees and the broader Kimberley community.”

The joint provisional liquidators further note that the process is not without significant challenges.

“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. That said, we believe there may be investors pursuing jewellery-grade gem opportunities who recognise the potential of this asset as a platform for recommissioning, optimisation or strategic repositioning.”

In the interim, the mine is being maintained under a structured care and maintenance programme to preserve asset value, with about 115 employees remaining on site. This includes extensive security measures across a 47 km perimeter, as well as continuous water pumping to protect underground infrastructure and prevent shaft flooding.

The cost of maintaining these activities is about R10-million a month, while no revenue is currently being generated from mining operations. Measures have accordingly been implemented to reduce expenditure, including limiting energy consumption to essential maintenance services only.

To assist in funding ongoing maintenance, the joint provisional liquidators are also progressing the sale of selected noncore surface assets that will not impact the overall viability of the mine. This is intended to provide a limited financial runway while efforts to secure a suitable buyer continue.

“Our objective is to preserve value, stabilise the operation and avoid full closure, which would have severe social and environmental consequences. We remain focused on engaging constructively with the relevant unions and government stakeholders, where appropriate, to identify a credible investor capable of unlocking the potential of this asset under the appropriate conditions,” the joint provisional liquidators conclude.