Billionaire Patrice Motsepe’s business in legal battle over mining venture

South Africa – African Rainbow Minerals (ARM), the mining company founded by billionaire Patrice Motsepe, is facing legal proceedings brought by its 50% joint-venture partner, Assore, over the management and control of their jointly owned mining business, Assmang.

According to BusinessTech, the dispute centres on ARM’s contractual rights to appoint senior executives, manage Assmang’s operations and obtain information and records needed to meet the company’s legal and regulatory obligations.

In a statement released through the Stock Exchange News Service (SENS) on October 13, ARM said it would challenge the claims and launch counter-proceedings against Assore.

“Based on legal advice received, ARM believes that Assore’s claims and allegations have no substantive merit,” the company said.

As reported by MiningMX, the dispute pits the Motsepe family, which controls ARM, against the Sacco family, which controls Assore. The two companies have each held a 50% stake in Assmang since a restructuring completed in 2006.

Despite the legal battle, ARM said it would continue managing Assmang in accordance with its contractual rights and obligations, while representatives of both companies continued engaging on operational matters.

The company also clarified that the dispute does not concern Assmang’s outstanding final dividend for the financial year ended June 30, 2026. Discussions between the shareholders on the timing and amount of the payment remain ongoing.

According to ARM’s official SENS announcement, published via ShareNet, cash and cash equivalents attributable to ARM at Assmang amounted to R3.9 billion as of June 30, 2026.

The legal proceedings mark a fresh challenge for the mining group, which operates in key commodities including iron ore and manganese. The outcome of the dispute could affect the relationship between the joint-venture partners and the governance of one of their major shared businesses.