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Pula Group disputes Motsepe's move to South African courts in R3. 4bn graphite dispute

Motsepe and his companies - who have now sought to have the dispute heard in the South African High Court - are accused by Pula of reneging on the Tanzanian graphite mining deal by allegedly investing in a similar project by an Australian rival of Pula. Image: Karen Sandison/Independent Newspapers Tawanda Karombo A bid by billionaire Patrice Motsepe's investment company, African Rainbow Capital (ARC), to have South African courts hear a dispute over a graphite mining deal turned sour has been rebutted by Pula Group, which argues that the case should continue to be heard before the Tanzanian High Court. Pula Group is a US company with interests in Tanzania. It is suing Motsepe owned companies including ARC and African Rainbow Minerals for R3.4 billion for breaching agreements related to a graphite mining deal in Tanzania. Motsepe and his companies - who have now sought to have the dispute heard in the South African High Court - are accused by Pula of reneging on the Tanzanian graphite mining deal by allegedly investing in a similar project by an Australian rival of Pula. Apparently, the two projects are located in the same area in Tanzania. Pula Group now argues that ARC and Motsepe have 'approached the South African High Court in an attempt to shield from the consequences of a R3.4bn lawsuit filed' in Tanzania by Pula Group LLC and its Tanzanian subsidiary, Pula Graphite Partners. The suit, filed on the basis of a breach of non-compete agreement and underway in Tanzania over the past two years, had already been set for a pre-trial conference on August 22. 'ARC's appeal to the South African courts appears to be a strategic attempt to sidestep accountability. What's troubling is the inconsistency in their legal arguments,' stated Pula president Mary Stith. 'In Tanzania, they assert that the parties named in the suit are unrelated yet in South Africa, they claim that a potential judgment against Motsepe, ARM, and ARCH would impact ARC directly.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ This 'contradiction raises serious questions about the credibility' of the South African billionaire and his companies' position, said Stith, adding: 'legal integrity demands consistency, and ARC's approach undermines that principle.' ARC argued in court papers filed in South Africa that 'notwithstanding the fact that Pula Graphite, ARC, Dr Motsepe and ARCH are not parties to the confidentiality agreement, Pula Group and Pula Graphite are seeking to hold them jointly and severally' liable together with ARM. It further argues that the Tanzanian High Court has to apply the law of the Republic of SA in its determination of the case as the confidentiality provisions of the agreement under dispute are based on South African statutes. 'It is our case that a finding on SA law will be dispositive of all the relief sought, first and foremost against ARC, but by necessary implication against Dr Motsepe and ARCH too,' argued ARC. The Motsepe group of companies is being represented by IMMA, Bowmans, and FNB while Pula and Pula Graphite Partners are being represented by Advocate Michael Ngalo and Beatus Malima. Pula chairman and former US Ambassador to Tanzania, Charles Stith, said ARC's move to apply to the South African High Court 'is part of a troubling' pattern. 'ARC seeks refuge in South African courts to avoid facing the consequences of its own actions. Their argument that Tanzanian courts lack jurisdiction is not only legally tenuous - it contradicts their own logic… South African courts should not be drawn into it,' he said. Pula said it has four graphite licenses in Tanzania's rich Graphite Belt, which is among the world's richest in quality and quantity, with its priority project is in the Ruangwa District in the Lindi Region where a second drilling exercise completed in the third quarter of 2023 indicates that there is nearly 145 million tons of measured, indicated, and inferred resource of the mineral. BUSINESS REPORT