Axis International seeks $28.9 billion from Guinea over revoked bauxite permit

DAKAR, Dec 29 (Reuters) - Axis International Ltd is seeking $28.9 billion from Guinea at a World Bank tribunal after the West African country revoked its permit to operate a bauxite mine there earlier this year, the United Arab Emirates-based company said on Monday.

Guinea, which has the world's largest reserves of bauxite, has moved over the past year to tighten state control over the mining sector, revoking and reallocating some permits as it seeks higher revenues and more local processing.

Such moves by the government headed by coup leader Mamady Doumbouya have led to a number of arbitration challenges, including one filed in November by Nomad Bauxite Corporation and another this month by Nimba Investment LLC.

"If it fails to pay compensation or refuses to participate, Guinea risks losing multilateral donor support and access to financial markets," Axis International said in a statement on Monday.

The arbitration challenge was filed at the World Bank's International Centre for Settlement of Investment Disputes.

Guinea's government did not immediately respond to a request for comment.

Axis International owns 85% of Axis Minerals Resources SA, a Guinean company with rights to a bauxite mine in the Boffa region. The company said in its statement that the permit was terminated in May along with dozens of others.

Axis International said that while the government claimed the mine was not operational or underutilised, it was operating at scale and supporting thousands of workers and their families.

"As we will show the World Bank tribunal, Guinea is liable for the entire amount of damages caused by its knowingly unlawful acts. That is USD 28.9 billion, at a minimum," Gunjan Sharma, counsel for Axis International, said in the statement.

The company said damages were calculated with reference to "proven reserves", which it put at more than 800 million metric tons.

The mine produced 18 million metric tons of bauxite in 2024, making it Guinea's second-largest source of bauxite ore exports, the company said.