The UAE-based company Axis International has filed an international arbitration claim seeking compensation of approximately $28.9 billion against the Guinean government,
following the cancellation of its bauxite mining rights in the West African country.
This is a move that represents one of the biggest investment disputes in the continent’s mining sector.
According to informed sources, Axis filed the lawsuit with the International Centre
for Settlement of Investment Disputes (ICSID) of the World Bank.
This comes after multiple failed attempts to reach an amicable settlement with the Guinean authorities.
The company is the second largest producer of bauxite in Guinea,
which tops the list of the world’s largest exporters of the raw material.
Bauxite is the material for making aluminum
That raw material is used in the production of alumina, the primary material for the aluminum industry.
Last May, the Guinean government cancelled more than 50 mining concessions
as part of a comprehensive review of the mining sector.
The decision was justified by the companies’ failure to comply with local mining law.
The cancellation included the Access franchise, along with other franchises,
including a unit belonging to Emirates Global Aluminium.
This is due to the alleged failure to implement local manufacturing projects.
For its part, Axis challenged the justifications for the cancellation, asserting that its unit,
Axis Mineral Resources, has been operating a bauxite mine in the Boufa region since 2020,
and that the mine was operating at full capacity.
18million tons of bauxite
Gunjan Sharma, the company’s lawyer, said that claims that the mine was not operational
or was not being exploited adequately “are not based on reality.”
The company noted that the project’s exports reached 18 million tons of bauxite during 2024,
with proven reserves exceeding 800 million tons.
She noted that the authorities confiscated the mining equipment and froze the company’s bank accounts.
In contrast, no official comment has been issued by the Guinean Ministry of Mining or the government.
The conflict comes at a time when the ruling military authorities
are seeking to highlight their progress in developing the mining sector.
This is amidst internal political controversy and electoral challenges.
Axis confirmed that it will seek to establish Guinea’s full responsibility
for the damages caused by “deliberate illegal actions”.
A claim for compensation that reflects the full economic value of the project.
