Union Blocks Ekapa Diamond Mine Liquidation

The National Union of Metalworkers of South Africa (NUMSA) won a case in the Northern Cape High Court in Kimberley to suspend the liquidation of the Ekapa mine, which will instead enter business rescue.

The union has been fighting to save jobs at the deposit since owners Ekapa Resources and Ekapa Minerals filed for liquidation in February, just a week after five miners were trapped and killed at the site following a mudslide. The two companies said the decision came after an internal review determined that due to the global diamond downturn, combined with the damage to the mine, it was no longer able to fulfill its financial obligations.

“NUMSA has successfully halted the rushed, callous liquidation of Ekapa Minerals and secured a court order placing the diamond-mining company under supervision and business rescue,” NUMSA said in a press release it issued on Facebook. “This judgement is a decisive victory for the working class over cold corporate indifference. Workers’ lives and livelihoods are not disposable and must come before corporate interest.”

The court’s decision hinged on a business-rescue plan that demonstrated clear, viable prospects for the mine to continue operations, NUMSA explained. The evidence showed the mudslide was localized to a certain portion of the mine, while enough of the other areas remained intact, fully functional, and commercially viable, the union stated.

The new plan of operation will save approximately 500 jobs, and will provide a “significantly” higher return to creditors than liquidation, NUMSA added.

Image: Rough diamonds. (Shutterstock)