Amanze Chinonye
A Tanzanian court has struck off a US$195 million damages claim brought by Pula Group against South African billionaire Patrice Motsepe and companies linked to him after finding that two entities connected to the disputed Chilalo graphite project had not been joined to the proceedings, Prime Business Africa reports.
The decision by the Commercial Division of Tanzania’s High Court in Dar es Salaam ended the current proceedings without determining whether Motsepe, African Rainbow Minerals (ARM), African Rainbow Capital (ARC) or ARCH Sustainable Resources GPCO Ltd breached the confidentiality obligations alleged by Pula.
Join our WhatsApp ChannelREAD ALSO :
Nigerian-Owned Caribbean Bank Sues Zambia Over $40m Investment Dispute
Pula Group and its Tanzanian subsidiary, Pula Graphite Partners Tanzania Ltd, had sought US$195 million in damages over allegations that confidential information shared during discussions over a potential investment in its Tanzanian graphite interests was subsequently used in connection with competing mining activities.
At the centre of the dispute was a confidentiality and non-compete agreement between Pula and ARM. Pula alleged that information provided under the agreement, including geological and commercial information, was subsequently used by parties associated with ARM and Motsepe.
The company argued that the information contributed to ARCH’s investment in Evolution Energy Minerals, whose Chilalo graphite project is located in Tanzania’s Lindi Region.
The defendants denied the allegations.
READ MORE :
BVI Court Slams $220m Judgment on Ex-Seplat Chairman Orjiako in Landmark Debt Enforcement Case
The litigation proceeded through several procedural challenges before reaching the latest ruling. In May 2024, Justice A.H. Gonzi rejected preliminary objections by ARC challenging Pula’s authority to bring the case, its legal standing, the existence of a cause of action and the jurisdiction of the Tanzanian court.
The court held that the objections raised issues that required evidence and could not be conclusively determined through preliminary objections. It also distinguished between the agreement’s choice of South African law as its governing law and the question of which court had jurisdiction to hear the dispute.
The proceedings were subsequently affected by related litigation in South Africa. In April 2026, the Tanzanian court allowed questions concerning jurisdiction and whether the case was barred by res judicata following the South African proceedings to be considered as part of the litigation.
The Tanzanian court found that resolving the res judicata issue required consideration of both legal and factual matters and therefore could not be determined without evidence.
The case eventually proceeded to trial, with Pula witnesses giving evidence in May 2026.
The decisive issue in the latest proceedings, however, was the composition of the parties before the court. The judge found that Evolution Energy Minerals and its Tanzanian subsidiary, Ngwena Tanzania Ltd, were necessary parties because of their connection to the Chilalo project and the matters in dispute.
Because the two companies had not been joined, the court struck the case off the roll.
The court also considered evidence concerning Pula’s exploration rights. Pula had sought to renew an exploration right before surrendering it, after which a newly incorporated company, Pula Carbon, obtained a fresh exploration right covering the same tenements. Pula Carbon was not a party to the proceedings.
READ ALSO :
Obvious Scam: Everything You Need To Know About Allegations Against Mmobuosi’s Tingo Group
The ruling therefore does not establish that Pula’s allegations were false, nor does it find that Motsepe or the companies named as defendants committed the alleged confidentiality breaches. Equally, Pula was not awarded the US$195 million it had sought.
Instead, the court brought the current proceedings to an end on procedural grounds after determining that parties considered necessary to a proper resolution of the dispute had not been joined.
Pula is considering its legal options, including a possible appeal, review application or fresh proceedings involving the entities identified by the court.
The dispute illustrates how a commercial disagreement over confidential mining information evolved into complex litigation spanning Tanzania and South Africa, while competition for graphite and other critical minerals continues to intensify across Africa.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
