Mozambican legal dispute puts Indian steel major JSW Steel’s coal deal on hold

India’s largest steelmaker, JSW Steel, has been sidelined by a legal dispute over a coal concession in Mozambique. The company had agreed to buy Minas de Revuboè (MdR) in May, but the Mozambican government revoked the license and awarded it to Stonecoal SA, which is directed by four employees of JSW Steel’s rival company, JSPL. The dispute has led to a legal battle between MdR and Mozambique’s government, with MdR seeking to have the original concession reinstated. The issue is significant for Mozambique, which is facing civil unrest and a deepening economic crisis. The deal was valued at $50 billion and would have provided a major boost to Mozambique’s economy. The dispute has also impacted India’s steel industry, as JSW Steel is one of the country’s largest steelmakers and needs to source large volumes of coking coal and iron ore for its operations. The dispute is set to continue, with MdR seeking to have its concession restored and JSW Steel trying to salvage the deal.