Axis sues Guinea for $29B over bauxite permit revocation

[Ben Graham]

United Arab Emirates-based bauxite producer Axis International has filed a $28.9 billion arbitration claim against Guinea at a World Bank tribunal after the government revoked its mining permit earlier this year.

Axis lodged the case with the International Centre for the Settlement of Investment Disputes, saying Guinea unlawfully terminated its rights as part of a wider crackdown on mining licences under President Mamadi Doumbouya’s military government. 

The revocation was one of more than 50 permits cancelled in May for alleged non-compliance with the mining code, a move aimed at boosting state revenue and expanding local processing. Axis said Guinea ignored repeated efforts to settle the dispute and wrongly claimed the mine was idle or underused.

Gunjan Sharma, a lawyer for Axis, said in an emailed statement the government’s justification was “not based on reality.” Axis said its Axis Minerals Resources unit has operated a bauxite mine in Boffa, about 150 km northwest of Conakry, since 2020, exporting 18 million tonnes in 2024 with proven reserves exceeding 800 million tonnes. The company also said authorities seized its equipment and froze its bank accounts.

“As we will show the World Bank tribunal, Guinea is liable for the entire amount of damages caused by its knowingly unlawful acts,” Sharma said.

Ownership and impact

Axis owns 85% of Axis Minerals Resources, which held the local permit, while the Guinean state owns the remaining stake. A local partner, Alliance Guinéenne de Bauxite d’Alumine et d’Aluminium, operates the mine.

Before the licence was revoked, Axis said it was on track to produce 48 million tonnes in 2025. Other companies hit by the government’s actions include Nomad Bauxite Corporation and Nimba Investment LLC, both of which filed arbitration claims late this year.

Guinea holds the world’s largest bauxite reserves, a raw material that’s refined into alumina, the main feedstock for making aluminum. It also has a vast iron ore deposit at its Simandou mountains, where the long-delayed namesake project was officially launched last month. 

Guinea’s military leader set to extend rule amid mining boom

Doumbouya has tied mining development to a broader strategy, known as Simandou 2040, that requires higher-value processing such as pelletization and eventual local refining. His government also revoked the licence of a subsidiary of Emirates Global Aluminium in July following a refinery dispute, transferring its assets to state-owned Nimba Mining.

Analysts say the moves likely boosted Doumbouya’s prospects at Sunday’s presidential election, the first since the 2021 coup.