South Africa must treat the rescue of Alexkor, a state-owned diamond miner in the Northern Cape, as a matter of national interest. The company faces serious challenges in governance and financial management, requiring decisive action and a credible plan for recovery. The goal is to restore its commercial viability and ensure its operations benefit the economy.
A Track Record of Profitability
Located at Alexander Bay, Alexkor operates near the Richtersveld community, with whom it has a 51%-49% joint venture. Despite its struggles, the company has shown potential for profit. In 2004, it recorded a net profit of R35.73m, a major turnaround from the R67.1m loss in 1999. It continued with profits of R36.1m in 2010, R84.2m in 2011, R6m in 2017, and R70m in 2023.
These figures prove Alexkor can generate substantial returns. This success forms a solid basis for addressing its current problems and building long-term financial sustainability that benefits the Richtersveld community.
Failed Reporting and Governance Concerns
The company recently missed a critical deadline. For the 2025/26 financial year, Alexkor failed to submit its annual report on time. This failure raises serious questions about its governance, administrative capacity, and accountability. It follows a pattern of problems.
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This situation has prompted the National Assembly to adopt a recommendation. The parliamentary portfolio committee on mineral & petroleum resources has called for a joint inquiry with the standing committee on public accounts (Scopa). The inquiry will investigate the root causes of Alexkor’s persistent audit disclaimers over the five years before 2025/26.
A Path to Recovery and Accountability
The planned inquiry aims to establish the facts. It will examine the reasons for the audit failures, test the adequacy of financial controls, and determine where accountability is needed. The findings will be evidence-based and focused on fixing the governance issues that have held Alexkor back.
Successful state-owned mining enterprises exist. Chile’s copper producer, Codelco, is a powerful example. With over 75,000 workers, Codelco contributed about $1.78bn to the Chilean treasury in its 2025 results. This shows that strong governance and commercial objectives are essential, not impossible, for state-owned firms. A similar approach is needed for Alexkor, tailored to its diamond mining reality and its relationship with the Richtersveld community.
