Mozambique’s legal disputes have put a major coal deal between Indian steel giant and the African nation on ice, according to Bloomberg.

Indian steel giant, JSW Steel, has seen its $151 million coal deal in Mozambique frozen due to a legal dispute. The deal, closed in 2017, was to acquire coal from Riversdale Mining, a Mozambican company, to fuel its Indian operations. However, the Mozambican government has been challenged in court by a local company, Montepuez Ressureição, which claims the deal was illegal. The local company alleges that the government did not follow proper procedures when selling the blocks of coal and that the deal was not transparent. The court has suspended the deal, citing irregularities. JSW Steel has denied any wrongdoing and is seeking to resolve the issue. The dispute has left the Indian steel giant in a precarious position, as it needs the coal to meet its production needs. The row highlights the challenges faced by foreign investors in Mozambique, where corruption and poor governance can make deals vulnerable to legal challenges.