Axis Sues Guinea for $29B Over Bauxite Permit Revocation

Axis International Challenges Guinea’s Mining Policy

, a UAE-based bauxite producer, filed a $28.9 billion arbitration claim against Guinea after the government revoked its mining permit. The dispute centers on Guinea’s May crackdown on over 50 mining licenses, which aimed to increase state revenue and expand local processing under President Mamadi Doumbouya’s military government. Axis claims the government unlawfully terminated its rights despite repeated efforts to resolve the conflict.

Axis Minerals Resources has operated a bauxite mine in Boffa, about 150 km northwest of Conakry, since 2020. In 2024 alone, the company exported 18 million tonnes of bauxite, backed by proven reserves exceeding 800 million tonnes. Axis asserts that Guinea seized its equipment and froze its bank accounts, undermining ongoing operations.

“Guinea is liable for the entire amount of damages caused by its knowingly unlawful acts,” said Gunjan Sharma, Axis’ legal representative. Founder Pankaj Oswal emphasized the mine’s decade-long contribution to Guinea’s economy, highlighting continuous operations even during the Ebola and COVID-19 crises.

Global Bauxite Market Implications

Guinea holds the world’s largest bauxite reserves, a critical feedstock for alumina and aluminum production. The permit revocation affects not only Axis but also other companies such as Nomad Bauxite Corporation and Nimba Investment LLC, which have filed similar claims. These actions could disrupt global supply chains and influence aluminum prices.

President Doumbouya’s Simandou 2040 initiative focuses on higher-value local processing, including pelletization and eventual refining. The government recently revoked a subsidiary license of Emirates Global Aluminium, transferring assets to state-owned Nimba Mining. Analysts suggest these moves may strengthen Doumbouya’s political position ahead of Guinea’s first presidential election since the 2021 coup.

SuperMetalPrice Commentary:

Axis International’s $29 billion arbitration claim highlights the growing political risk in Guinea’s mining sector. Investors should monitor local policy shifts and permit disputes closely, as they could impact global aluminum supply and pricing. While Guinea pursues higher-value processing, abrupt permit revocations may deter foreign investment, creating volatility in bauxite markets.