'The mine is in an environmentally sensitive wetland region'

THE politically connected Gupta family's key money man is an investor in a mysterious empowerment consortium now under investigation for flouting the law at Idwala coal mine in Mpumalanga.

Ravindra Nath is the chief financial officer of one of the family's main business entities, Sahara Computers.

Idwala coal mine near Witbank has now been issued with a notice by the Department of Water Affairs signalling its intention to act against the mine for the "unlawful use of water".

The mine is in an environmentally sensitive wetland region.

Department spokesman Linda Page said: "Idwala Coal does not have a water use authorisation. Officials of the compliance monitoring and enforcement units ... conducted a joint investigation of the premises on which they are operating."

Page said Idwala claimed to have applied for a water use licence. "This is currently being verified by the [Mpumalanga] region," she said.

Nath this week refused to identify the owners of Idwala Coal, but said he was a "silent investor".

Idwala's water licence probe is one of several alleged irregularities involving the company. This week the Sunday Times established that:

• Idwala's operations on Vierfontein farm have angered nearby farmers and the Mpumalanga Agricultural Union has called for an investigation into alleged environmental infringements by the firm;
• According to the Department of Mineral Resources, mining rights to Vierfontein farm - portions 31 and 44 - were awarded to an entity called Idwala Crypts in 2010. However, records held by the Companies and Intellectual Property Commission (CIPC) show that the company was deregistered in 2006;
• The Mpumalanga Parks and Tourism Authority said it had not received an environmental management plan from Idwala; and,
• Established mining company, Idwala Industrial Holdings, is set to lodge a complaint with the CIPC against Idwala Coal - claiming an infringement against its trade name.

The Department of Environmental Affairs and Tourism declined to say if Idwala had submitted the environmental impact assessments that are needed before the company can do anything on the mine site, such as build roads.

Besides his position at Sahara, Nath is also listed as a director of Mabengela Resources and Energy, JIC Mining Services and Tegeta Resources - all linked to the Gupta family.

The family came under the spotlight last year when the Sunday Times revealed how senior ANC leaders had questioned their relationship with President Jacob Zuma.

Nath denied the mine had any connection to the Guptas, or that it was mining without a valid water licence.

"I am just a silent investor in that [company]. The owner of the company is a BEE consortium and an overseas investor," he said. "It has nothing to do with the Gupta company."

Mineral Resources Minister Susan Shabangu, replying to a question in parliament earlier this year, said a mining licence had been issued to Idwala Crypts - which was by then deregistered - and not Idwala Coal.

Nath's partner in Idwala, Tielman Roux, said: "[Idwala] is committed to mine and trade in regulation with all the laws governing us."

He said that the Guptas' only association "may be via their indirect shareholding".