JOHANNESBURG - The Ekapa mine in Kimberley has shut down with immediate effect.
The five workers who were trapped underground are now presumed dead.
The company has also applied for liquidation.
Meanwhile, 385 workers have reportedly not been paid this month.
In a statement, the company said: “After careful consideration of all operational, financial and safety factors, the boards and shareholders of Ekapa Resources and Ekapa Minerals have concluded that continuing to operate the business as a mining and processing company is no longer viable.
“With deep regret, Ekapa confirms that a decision has been taken to apply to court to place Ekapa Resources (Pty) Ltd and Ekapa Minerals (Pty) Ltd into liquidation.
“This decision follows a careful assessment which concluded that the company cannot continue to meet its financial obligations given the prolonged global diamond market downturn, exacerbated by the recent tragic incident.
“The Du Toitspan mine has officially been closed as of today.
“Notwithstanding the closure of the mine, search operations will continue, and management remains committed to supporting recovery efforts, subject to safety considerations.”
The company said the decision was not taken lightly but was considered to be in the best interest of all stakeholders.
This marks the end of 158 years of continuous diamond mining in Kimberley, a legacy the company said it acknowledges with humility and respect.
Ekapa said search operations will continue, with the focus on recovering the miners once conditions allow safe access.
The company extended its condolences to the families, colleagues and loved ones of the missing miners, and said engagement and support for families will continue while respecting their privacy.