Second Gupta mine operating illegally

A second company associated with the influential Gupta family has been caught mining illegally an hour's drive east of Johannesburg, where it is developing a 50000-tons-a month coal mine on 200ha of farmland.

Tegeta Exploration and Mining, a subsidiary of the Guptas' Oakbay Investments, has been mining without permission at Brakfontein mine near Delmas, Mpumalanga.

Tegeta has applied for permission to expand its operation in the middle of South Africa's lucrative coalfields despite admitting to mining illegally there on and off for nearly two years.

Last week, the Sunday Times revealed that another Gupta company, Idwala Coal, has mined illegally, damaged wetlands and diverted a stream and a road since 2010, despite complaints from neighbouring farmers. These activities have raised questions about whether the authorities are turning a blind eye - although they act swiftly against other illegal mines.

The family has been embroiled in controversy because of perceptions that it benefits from close ties to President Jacob Zuma. Zuma's son Duduzane is a key director in several Gupta companies. The relationship was discussed in parliament this week when Zuma denied giving permission for the Guptas' private wedding guests to land at Waterkloof Air Force Base this year en route to a lavish wedding at Sun City.

Ravindra Nath - the man central to both mining ventures and a top executive at the Guptas' Sahara Computers - appears on a public Facebook account bearing his name and work history at Sahara in a photograph shaking hands with Zuma. The image was posted in January 2011.

Nath's company started mining illegally in Mpumalanga the previous year.

Nath was unavailable for comment last week. This week his office said he was in India. He did not respond to messages.

Mohau Ramodibe, spokesman for Mpumalanga's department of economic development, environment and tourism, confirmed this week that both mining companies were in breach of the law.

"The department is aware of the illegal commencement of the listed activities and we have acted by issuing the pre-notice to the respective mines. We have received their rectification applications, which will be processed in due course," he said.

A mining company that breaks the law can apply for rectification to right past wrongs and thus continue business.

"The rectification application does not exonerate mining companies or individuals or any other person from other enforcement actions to be taken against them, even though they have applied for rectification," said Ramodibe.

The department did not say whether further action would be taken against Idwala or Tegeta.

Both companies have been mining without a valid water-use licence. The Water Act states that no mining may take place without such a licence.

The Sunday Times has also established that the Department of Mineral Resources issued both companies with noncompliance orders in terms of the Mine Health and Safety Act, relating to the safety of workers on site.

Tegeta's mining activities outside Delmas have angered some residents. Minutes of a public participation meeting in July detail community concerns, including that:

Mining activity had contaminated river water in the area;

The mine did not have a valid social labour plan;

Graves were being exhumed without notifying anybody; and

The mine's water pipes were being dumped on farmers' property.

In response, the mine's environmental consultant said all the transgressions were being addressed with the relevant authorities. The unauthorised activities listed in the mine's environmental plan include clearing indigenous vegetation, building a road, construction within 32m of a river and releasing pollutants.

A farmer neighbouring the mine said Tegeta had started mining without notification.

"About three years ago they started to dig trenches - no notifications. We tried to stop them. They are mining right up to my border," said the farmer, who asked not to be named.

• jordanb@sundaytimes.co.za