Gupta family interests plan to tear up Napier looking for gold

The natural environment and agricultural economy of the Agulhas Wine Triangle is under threat, as a BEE holding company for Gupta mining interests seeks an exploration license

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Newsroom

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Jul 17, 2024

Gupta family interests plan to tear up Napier looking for gold

Napier, an idyllic and historical town in the heart of the Agulhas Wine Triangle, now faces a potential existential crisis. The threat comes from a company called Cienth, which has applied for a prospecting licence for gold, silver, and tin in the area.

The application, which spans the areas of Agulhas, Arniston, Caledon, De Hoop, Elim, Napier, and Stanford, has raised concerns due to geologists' skepticism about the viability of gold deposits in the region.

The company behind the application, Cienth, seeks a 30-year licence to explore approximately 4,200 hectares of farmland for gold, silver, and tin. This plan has sparked fears of open-cast mining, which residents argue will cause irreversible damage to the pristine conservation area.

Local stakeholders worry that the proposed mining operations will lead to noise pollution, dust plumes, and acid-mine drainage, negatively impacting crops and wildlife. Additionally, the region’s thriving tourism industry could suffer, with tourists potentially being deterred by the environmental degradation.

A key area at risk is the Nuwejaars Wetlands Special Management Area (NWSMA), which forms the catchment of the Nuwejaars River and connects with wetlands feeding into the De Mond estuary, a Ramsar Site of International Importance. The NWSMA covers 46,000 hectares on the Agulhas Plain, donated by 25 farmers committed to conservation, sustainable farming, and climate change mitigation.

The region, known for its unique flora and fauna, mineral-rich soils, and quality wines, could see its ecological efforts undone if mining proceeds. Landowners have legally committed to conservation principles, with income from their activities funding further conservation efforts.

Cienth, the company applying for the license, appears to be a BEE-shell outfit hiding the interests of the Gupta family.

Cienth Pty Ltd operates without a website and is helmed by 29-year-old Rosy Mvala, who curiously serves as the director for no fewer than 88 companies. Mvala ascended to her position at Cienth just months before the company filed its mining application for the Agulhas Wine Triangle (AWT). She replaced David Barnett Silver, a former director of Centaur Mining. This South African-registered mining subsidiary of Centaur Holdings in the UAE was implicated in the Public Protector’s State of Capture Report. Another notable director was Aakash Garg Jahajgarhia, connected by marriage to the influential Anil Kumar Gupta.

Centaur Holdings made headlines in 2016 when it secured a $100-million revolving credit deal from an undisclosed UAE-based family to expand its mining and natural resources ventures in South Africa. This funding facilitated the acquisition of the De Roodepoort coal mine in Mpumalanga. Centaur also contributed to the purchase of Optimum Coal Holdings, in collaboration with entities linked to the Gupta family, including Trillian Capital, Regiments, and the "letterbox company" Albatime.

The other directors of Cienth, Lindsay George Oswald Baatjies and Brighton Kamanga, have since resigned, while Songezo Sakhiwo Mtshengu has passed away. Cienth was incorporated on March 22, 2019, and lists its headquarters as a unit in The Regent, a luxury apartment hotel in Sandton.

Rosy Mvala, who took over directorship on April 21, 2023, coinciding with Silver's resignation, confirmed that Silver remains a shareholder. However, she declined to disclose details about other potential shareholders, leaving their identities shrouded in mystery.

This announcement has sparked a wave of opposition from residents, farmers, and tourists alike. Reports of the proposed open-cast mine have raised alarm, particularly concerning the potential impact on the Agulhas Wine Triangle.

Local residents have taken to social media to express their fears that mining activities could devastate soil quality and pollute groundwater, particularly around the wine farms. Carl Reiche, from the Save the Overberg Campaign, voiced concerns about possible land expropriation for mining exploration, which could drastically alter the landscape and demographics of the region.

Jon van Bon, a local resident and organiser of the Creative Napier Pop-up Art Week, expressed strong opposition: "I don’t want an open-cast mine in my backyard. Everyone knows there is no significant gold here, and mining will destroy our wheatfields and fragile ecosystems."

Kosie van Zyl, a prominent local farmer and advocate for the community, has vowed to fight the mining plans. He highlighted the advanced stage of Cienth's licensing process, noting that an environmental impact study has already been submitted. Van Zyl questioned the economic benefits of the proposed mining, doubting the presence of gold and raising concerns about water scarcity and local employment.

Environmentalists have warned that open-pit mining can lead to significant ecological damage, including changes to vegetation, soil, and groundwater levels, as well as the release of harmful pollutants. The use of heavy machinery and blasting techniques further exacerbates environmental pollution.

Cienth has not yet responded to inquiries about their plans. Meanwhile, concerned individuals are encouraged to visit www.savetheoverberg.com for more information and to join the campaign against the mining venture.

Conservationists Odette Curtis-Scott and Grant Forbes argue that the minimal gold found in the region, less than 0.3 grams per ton, is economically unviable. However, Cienth plans extensive exploration, starting with a desk-top study, followed by geological mapping and drilling, before seeking a mining licence.

As the debate continues, the fate of the Agulhas Wine Triangle hangs in the balance, with its residents, farmers, and conservationists determined to protect their land from the potential ravages of open-cast mining.

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