How Naveen Jindal trumped elder brother Sajjan Jindal in Mozambique!
It’s quite astounded by how Naveen Jindal has shown elder brother Sajjan Jindal in Mozambique: “Baad bada na bhaiya, sabse bada rupaiyya! 🙏🙏
It’s quite astounded by how Naveen Jindal has shown elder brother Sajjan Jindal in Mozambique: “Baad bada na bhaiya, sabse bada rupaiyya! 🙏🙏
This has to be a masterclass in corporate sibling rivalry, and how politically connected businessmen operate.
And while Indian media is all silent on this, here’s all you should know!
See, in 2021, NJ acquired Mozambique's largest coal mine, Moatize, from Brazilian mining giant Vale SA for $270mn.
This acquisition positioned NJ not just as a significant player in Mozambique's mining sector but also as a neighbour to the coal mining rights his elder brother SJ was eyeing.
And guess what?
About 1.5yrs later, SJ’s JSW Steel, aiming to expand its raw material base for steel production, had finally struck a deal to acquire the mine by paying $74mn to the concession holder, Minas de Revuboè (MdR).
And this was big because the said coal mine is so so huge, it has coal with an estimated worth of $50bn!
..
But, about 8 months after JSW Steel signed the deal, Mozambican Govt unexpectedly revoked MdR's mining lease 🙏🙏
This meant, MdR no longer had the right to sell that massive coal mine to anyone. And while MdR took the Govt to the international courts for arbitration, the Govt did not care.
Within a month of revoking MdR’s concession on that mine, the Govt readvertised it. And guess who the mine was awarded to?
A brand new company called Stonecoal SA.
No, see this is a funny situation. Why?
Apparently, 4/5 directors running Stonecoal are the sitting employees of Jindal Steel and Power Ltd (JSPL) which is owned by NJ
Moreover, one of those directors (Prashant Goyal) has been appointed the CEO of JSPL’s Africa business by NJ
Plus, there is no public information about who owns Stonecoal, to have appointed those 4 JSPL employees as directors without any objections from NJ, unless it is NJ himself! 🙏🙏
..
See, this isn't just about sibling rivalry.
It’s about securing a near-monopoly in Mozambique’s coal mining economy.
NJ could control a significant portion of the coal supply chain, from mining to export, especially since the country’s biggest coal mine (Moatize), which he already controls, lies adjacent to the mine in question.
Oh, and did I tell you that Stonecoal’s office has the same office location as the offices of businesses run by the son of Mozambique’s president? 🙏🙏
And of course, whatever I have said is just speculative story-telling, and as Rakesh Jhunjhunwala always said - I reserve the right to be wrong :)
Best,
Jayant Mundhra