UNITED Arab Emirates-based Axis International has initiated a $29bn arbitration case against Guinea’s government following the revocation of its bauxite mining permit, equipment seizures and frozen bank accounts, said the Financial Times in a report last month.
The company filed proceedings before the World Bank’s International Centre for the Settlement of Investment Disputes on Christmas Day after Guinea ignored settlement discussions. The permit was cancelled in May without notice despite Axis operating as the country’s second-largest bauxite producer.
Guinea produces approximately a third of globally mined bauxite, the primary aluminium ingredient, making it the world’s largest exporter. However, President Mamady Doumbouya’s government has revoked numerous licences across gold, bauxite, diamond, graphite and iron sectors this year as part of resource nationalism efforts.
Doumbouya, who seized power in a 2021 coup, was confirmed president following national elections on December 28. The Supreme Court in Guinea upheld the election victory, according to a report by ABC News. Doumbouya polled 86.7% of the votes, it said.
Doumbouya’s government has demanded greater local processing of minerals, said the Financil Times. His administration forced Chinese, Singaporean and Rio Tinto operations to collaborate on the $23bn Simandou iron ore project, requiring pelletisation and eventual local refining under the Simandou 2040 programme, the newspaper said.
Axis stated its Boké region mine, located 150 kilometres from capital Conakry, had exported material since 2020 and was tracking towards 48 million tons production in 2025. The operation supported 5,000 workers and families in Boffa.
Mining minister Bouna Sylla told the Financial Times in November that companies breaching agreements faced penalties, rejecting “expropriation” terminology whilst citing failures to build required refineries.
Axis founder Pankaj Oswal said the company had contributed materially to Guinea’s economy since entering in 2013. Axis owns 85% of the local permit holder, with Guinea holding the remainder.
