JSW Steel, led by Sajjan Jindal, had agreed in May to acquire a 92% stake in MdR for $74 million as part of a broader investment plan. However, two months after the lease revocation, the Mozambican Ministry of Mineral Resources and Energy published a notice offering a 30-day period for objections to awarding the coal concession to Stonecoal SA, a company with close ties to the Jindal family.

Four of Stonecoal's five directors are employed by Naveen Jindal's JSW Steel & Power Ltd. (JSPL), though Stonecoal’s representatives have denied any direct connection to the company, stating the efforts were made in a personal capacity.

The dispute comes at a crucial moment for Mozambique, which is grappling with civil unrest following disputed elections. It also complicates the efforts of JSW Steel, which had hoped to secure the coal mine as part of its strategy to meet the growing demand for key materials, like coking coal, for steel production.

JSW Steel and the Talbot estate are challenging the revocation in arbitration, seeking to restore the original lease and finalize the sale. The case is being overseen by the International Centre for Settlement of Investment Disputes, with a tribunal hearing expected in early 2025. The outcome could have significant implications for the Jindals’ mining interests and the broader Mozambican mining sector.