Business & Money
Patrice Motsepe Faces $195M Lawsuit in Tanzania Over Mining Deal
The Tanzanian mining firm Pula Group is suing Patrice Motsepe and his associated companies, alleging they breached a non-compete agreement by investing in Australia’s Evolution Energy Minerals, which operates near Pula’s graphite project.
: South African billionaire Patrice Motsepe’s companies face a $195M lawsuit in Tanzania, accused of breaching a non-compete contract in graphite mining.
South Africa’s first black billionaire Patrice Motsepe and his associated companies—African Rainbow Minerals (ARM), African Rainbow Capital, and ARCH Emerging Markets—are facing a $195 million lawsuit in Tanzania, one of the largest commercial cases in the country’s history.
The case, initiated by the Tanzanian mining firm Pula Group, resumes in court on November 4 and centers around claims of a breached non-compete agreement.
According to Pula’s chairman, Charles Stith, ARM’s investment in Australia’s Evolution Energy Minerals, located near Pula’s graphite project, violates a two-year non-compete agreement they had previously signed.
Stith explained that the lawsuit’s $195 million claim is based on a third-party evaluation of the losses Pula stands to incur due to the alleged breach.
He voiced concerns over ARM’s practices, stating, “Similar dynamics have been observed across the African continent, and this case is expected to set a legal precedent to protect the rights of local mining and exploration companies competing with international counterparts in Tanzania”
ARM, in its defense, claims that the accusations are baseless.
An ARM spokesperson said that while the company initially signed a confidentiality agreement with Pula to explore potential investment in graphite, it ultimately chose not to pursue the project and informed Pula of this decision.
ARM’s legal team has also argued procedural issues, including claims of improper service and jurisdictional objections, occasionally not appearing in court to contest these points.
Stith, a former U.S. ambassador to Tanzania, also highlighted the broader implications, pointing out that such disputes often hinder equitable access for local mining companies competing with global firms in Africa’s resource sector. This case could therefore influence future agreements and operational norms for foreign investments across the continent
Keywords:Patrice Motsepe lawsuit:African Rainbow Minerals Tanzania:Pula Group non-compete breach:Tanzania commercial court mining:Evolution Energy Minerals