Axis International Ltd has initiated arbitration proceedings seeking USD 28.9 billion in compensation from Guinea, following the West African nation’s decision to revoke the company’s bauxite mining permit earlier this year. The United Arab Emirates-based firm confirmed that it has taken the dispute to a World Bank tribunal.
The case comes amid a broader shift in Guinea’s approach to its mining industry. Home to the world’s largest bauxite reserves, the country has, over the past year, moved to strengthen state oversight of the sector. This has included cancelling and redistributing several mining permits as the authorities push for higher state revenues and increased local processing of raw materials.
Led by coup leader Mamady Doumbouya, these policy alterations have triggered several international legal challenges. In November, Nomad Bauxite Corporation filed an arbitration claim, followed earlier this month by a similar action from Nimba Investment LLC.
Axis International warned that Guinea could face serious financial consequences if it does not engage with the arbitration process. In a statement issued on Monday, the company said that failure to compensate or participate in proceedings could jeopardise the country’s access to multilateral donor funding and international financial markets.