**Guinea to Contest $28.9 Billion Arbitration Claim from Axis International**
Guinea is preparing to defend itself against a $28.9 billion arbitration claim filed by Axis International Ltd., which alleges that the country wrongfully revoked its bauxite-mining permit. The United Arab Emirates-based company claims that Guinea’s decision to terminate its mining rights in May was unjustified. Axis, identified as the second-largest bauxite producer in Guinea, has submitted its arbitration request to the International Centre for the Settlement of Investment Disputes, a World Bank entity.
Minister of Mines and Geology, Bouna Sylla, stated in a phone interview from Conakry, the capital of Guinea, “Guinea is ready to defend its interests. We will go to arbitration, but Axis is not in the right.” This arbitration process occurs as President Mamadi Doumbouya, head of Guinea’s military junta, aims to attract more mining investments to the nation, which is the leading exporter of bauxite—a key raw material for aluminum production. Earlier this year, Guinea also commenced shipments from Simandou, one of the largest iron-ore deposits globally.
The ongoing dispute highlights a broader trend among African governments seeking to enhance their share of resource revenues. Guinea has terminated several older mining concessions, citing non-compliance with its regulations, including the permit held by Axis for a bauxite mine located in Boffa, approximately 150 kilometers northwest of Conakry.
Sylla explained, “The permit was canceled due to violations of the mining code and the general tax code of the Republic of Guinea. The company was not directly involved in mining operations but had subcontracted the permit to two other companies, receiving $2 for each ton without making any investments or paying taxes.” In contrast, Axis contends that the reason given for the permit’s cancellation—that the mine was not operational—was inaccurate. “The law is on our side,” asserted Axis founder and Chairman Pankaj Oswal in an email response. “International investment law exists precisely to protect mining investors facing these types of situations.”
As the arbitration unfolds, the implications for both Guinea and Axis International could significantly impact the future of mining investments in the region.
**FAQ**
**What is the basis of Axis International’s arbitration claim against Guinea?**
Axis International claims that Guinea wrongfully revoked its bauxite-mining permit, alleging that the cancellation was unjustified and that the company was compliant with operational requirements.