By Loni Prinsloo.
A company linked to South African billionaire Patrice Motsepe said a Tanzanian court has struck out a long-running case brought by Pula Group LLC against him and affiliated firms, in which Pula sought $195 million (around R3.2 billion) in damages.
The High Court made the ruling on 9 October, African Rainbow Minerals Ltd said in a statement Wednesday.
“ARM welcomes the judgment,” it said. “ARM has always viewed the Pula claim to be unfounded and fabricated.”
Pula and its Tanzanian unit sued Motsepe and his associate firms – African Rainbow Minerals Ltd, African Rainbow Capital Investments Ltd and ARCH Sustainable Resources GPCO Ltd – for allegedly breaching a non-compete contract when it invested in Australia’s Evolution Energy Minerals Ltd, whose Chilalo project is located next to Pula’s graphite project, according to court documents.
Judge FM Mirindo first struck the case off the roll in an 7 August judgment because Pula didn’t join Evolution companies he considered necessary parties.
He didn’t determine if the confidentiality contract was breached and didn’t award any damages.
Pula subsequently filed a notice of appeal on 24 August, saying it “was dissatisfied with the decision of the High Court of the United Republic of Tanzania” and that the group appealed “against the whole of that decision”.
Pula said it is considering its options.
“We have appealed the earlier ruling on this case and beyond that we have the option to refile the suit,” chair Charles Stith said. “This is not over by a long shot.”