I was working on the SK Khukri quests when i ran across this mob. I can confirm he is kos to sarnak. If you keep him up he will respond to hails and some key words.
You say, "What hammer of dalnir"
a coerced smith blinks a few times. 'The hammer my friend did have. He became sick and they took him away. Where he is i do not know.'
You say, "What forge"
a coerced smith stares at you blankly and beings to mumble. 'I work this for for Master Kly. To use this forge, you must have the hammer of Dalnir.'