India’s largest steelmaker can proceed with the acquisition of a coal deposit in Mozambique after the seller recovered the concession rights from the country’s new government.
JSW Steel Ltd.’s $74 million deal to buy Minas de Revuboe — announced a year ago — ran into trouble when the administration of then-President Filipe Jacinto Nyusi revoked the local company’s mining lease. MdR responded by initiating legal and arbitration proceedings to regain the license.
The concession was restored to MdR – owned by the estate of Ken Talbot, an Australian mining tycoon who died 14 years ago – last week, according to Mozambique’s database of natural resources permits. President Daniel Chapo’s cabinet had already reversed the cancellation of MdR’s mining contract with the government on April 15.
“We are pleased with the outcome and express our gratitude to the government for its leading role in facilitating this,” a spokesperson for the Talbot estate said. “We are now focused on preparing the project for development and progressing the sale to JSW Steel.”
