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 this year, the United Arab Emirates-based company said on Monday.

Guinea, which has the world's largest reserves of bauxite, has moved to tighten state control over the mining sector over the past year, revoking and reallocating some permits as it seeks higher revenue 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," an Axis International statement said on Monday.

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

Guinea's government did not respond immediately 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's statement said 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.

"Over more than a decade, the project developed into a fully operational mine contributing materially to Guinea's economy," Axis International founder Pankaj Oswal said in the statement.

Guinea is liable for at least $28.9 billion in damages based on "proven reserves" of more than 800 million metric tons, the statement said.

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