en.Wedoany.com Reported - The joint provisional liquidators of Ekapa Minerals and Ekapa Resources have initiated a formal process to sell the Ekapa diamond mine to both domestic and international investors, while intensifying efforts to maintain the mine's ongoing operations.
Located in Kimberley, South Africa, the mine is a fully permitted asset encompassing both surface and underground mining operations. Its resources include approximately 140 million tonnes of tailings material, a processing plant with an annual capacity of 9.6 million tonnes, and three kimberlite pipes—Du Toits Pan, Bultfontein, and Wesselton—which form part of the renowned "Big Five" cluster.
The joint provisional liquidators noted that the plant and surface infrastructure are well-maintained, and that the Bultfontein and Wesselton shafts could potentially resume operations relatively quickly if market conditions improve. The sale will be conducted through a jointly mandated auction process. Potential investors can acquire the core assets and mining rights and restart operations within a stipulated 90-day period, or reposition the asset as part of a long-term strategy.
The joint provisional liquidators stated that preserving the mine remains a core objective. Richard Pollock, representing the joint provisional liquidators, pointed out: "From our first site engagement, we were aligned that every effort should be made to determine if the mine could be saved, in part or in whole. This remains a priority and would benefit creditors, employees, and the broader Kimberley community."
The joint provisional liquidators further noted that the process is not without significant challenges. "We are soberly aware of the difficulty in finding a suitable buyer given the current pressures in the global diamond market, including the increasing prevalence of synthetic diamonds in industrial applications, and the substantial capital required to resume operations. Nevertheless, we believe there may be investors seeking gem-quality stone opportunities who recognize the asset's potential as a platform for recommissioning, optimization, or strategic repositioning."
During this period, the mine is being maintained under a structured care and maintenance program to preserve asset value, with approximately 115 employees on site. This includes extensive security measures across a 47-kilometer perimeter, as well as continuous pumping to protect underground infrastructure and prevent the mine from flooding. The cost of sustaining these activities is approximately ZAR 10 million per month, while no revenue is currently being generated from mining operations. Consequently, measures have been taken to reduce expenditure, including limiting energy consumption to essential maintenance services.
To help fund the ongoing maintenance efforts, the joint provisional liquidators are also advancing the sale of certain non-core surface assets that do not impact the mine's overall viability. This move is intended to provide a limited financial buffer period while efforts continue to find a suitable buyer. The joint provisional liquidators concluded: "Our objective is to preserve value, stabilize operations, and avoid a full closure, which would carry severe social and environmental consequences. We remain focused on engaging constructively with relevant unions and government stakeholders, where appropriate, to identify a credible investor capable of unlocking the asset's potential under suitable conditions."
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