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Patrice Motsepe seeks South African hearing in $195 million mining dispute

South African billionaire Patrice Motsepe and linked companies turn to South African courts as Tanzanian case over $195 million NDA breach nears trial.

Patrice Motsepe
Patrice Motsepe

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Billionaire businessman Patrice Motsepe and several companies linked to him have turned to South African courts as a Tanzanian High Court prepares to rule in a long-running mining dispute, according to court filings and statements from the opposing party. 

At the center of the case is a claim by Pula Group, a U.S.-based mining company, that Motsepe and related firms breached a confidentiality agreement signed in 2019. Pula alleges that information shared under that agreement was later used to back a rival graphite project in Tanzania’s Ruangwa region. Motsepe and the companies deny the allegations. 

ARC seeks urgent commercial court hearing

In August 2025, African Rainbow Capital (ARC), Motsepe’s investment firm, asked the Johannesburg High Court—ex parte—to allow service of court papers by edictal citation, a method used when a party’s location is unknown.

In December, ARC requested that the case be treated as a commercial matter and heard urgently. Pula said the timing is notable, with a Tanzanian court expected to set a trial date soon on its $195 million damages claim. Other respondents named by Pula include Motsepe, African Rainbow Minerals (ARM) and ARCH Sustainable Resources.

Pula sues over 2019 NDA breach

Pula filed the case in 2023, saying the 2019 non-disclosure agreement gave Motsepe’s companies access to confidential project data during talks about a possible partnership. No deal was reached. In October 2022, Pula said it learned that ARCH, a private equity fund in which Motsepe has a significant interest, had invested in a neighboring graphite project owned by Australia’s Evolution Energy Minerals. 

Motsepe has previously described Pula’s claims as “baseless and nonsensical,” saying he does not recall seeing the confidential material. ARC has said it is not bound by the agreement, which it says applied only to ARM.

Motsepe parties hit Tanzania court hurdle

Founded in 1997, ARM today is one of South Africa’s largest diversified mining companies. Patrice Motsepe, with a net worth of $3.9 billion according to Forbes, owns a 45 percent stake. His wider holdings are managed through African Rainbow Capital (ARC).

Jurisdiction issues have held up the legal dispute between Motsepe and Pula for nearly two years. Pula claims the Motsepe parties sought to move the case to South Africa after setbacks in Tanzania. Only ARC submitted a defense in Dar es Salaam.

In July 2024, the Tanzanian High Court ruled that Motsepe, ARM, and ARCH lost standing after missing a prior hearing. A default judgment application by Pula has been granted and is awaiting a ruling. Pula said attempts by the Motsepe parties to rejoin the case were rejected, prompting filings in South Africa. ARC, which delisted from the JSE last year, argues that South African courts have jurisdiction. ARM and ARC did not respond to requests for comment.

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