JSW Steel’s coal acquisition deal in limbo due to legal disputes in Mozambique

India’s largest steelmaker, JSW Steel Ltd, has been affected by a legal dispute over a coal concession in Mozambique. The company agreed to buy Minas de Revuboè (MdR) from the estate of Ken Talbot, an Australian mining tycoon, in May. However, the Mozambican government revoked MdR’s lease, citing a lack of exploration works. The government then offered the concession to Stonecoal SA, which has four directors employed at JSW’s sister company, JSPL. The dispute has triggered a legal battle between MdR and the Mozambican government, with MdR seeking to have the original concession reinstated. The company has also initiated arbitration proceedings in Geneva. The dispute comes at a critical time for Mozambique, which is facing civil unrest and disputed elections. The outcome of the dispute will impact JSW’s plans to mine more coking coal and iron ore, which are essential for its steel operations. The company has spent $300 million on the project and is seeking to complete the sale to JSW.