South African billionaire Patrice Motsepe and several companies associated with him, including African Rainbow Minerals (ARM), are facing a $195 million lawsuit from Tanzania’s Pula Group over the alleged breach of a non-compete agreement. Pula claims that Motsepe’s companies violated confidentiality terms by investing in Evolution Energy Minerals, an Australian competitor operating near Pula’s graphite project. Pula’s chairman, Charles Stith, asserts that the lawsuit’s valuation is based on estimated financial losses resulting from this alleged breach, arguing that such practices disadvantage local firms in Tanzania’s mining sector. Motsepe’s representatives deny any wrongdoing, stating that ARM initially considered but ultimately declined to invest in Pula’s project. The lawsuit, among Tanzania’s largest commercial court cases, could set a important precedent for protecting domestic mining firms against competitive practices by foreign-backed entities.
SOURCE: NAIRAMETRICS
