Axis International initiates arbitration at World Bank, seeks USD 28.9 bn damages

New Delhi, Dec 30 (PTI) Axis International Ltd said it has initiated an arbitration at the World Bank, seeking USD 28.9 billion in compensation against the Republic of Guinea.

The compensation was sought after Guinea unlawfully terminated Axis International's rights to the country's second-largest bauxite mine with proven reserves of over 800 million tonnes.

Axis International said in a statement that it has filed the arbitration after the Government in Conakry ignored multiple attempts at settlement discussions.

Axis International, based in Ras Al Khaimah, United Arab Emirates, owns 85 per cent of Axis Minerals Resources SA, a Guinean company with rights to a bauxite mine in the region of Boffa, Guinea.

"On Christmas Day, Axis International Ltd commenced an arbitration against the Republic of Guinea before the World Bank.

In a somewhat unique case, Axis International has filed a "one-two-punch" complaint. It is bringing claims under both the 2011 bilateral investment treaty between Guinea and the United Arab Emirates and Guinea's 1995 Investment Code, the statement said.

The arbitration is being administered by the World Bank Group's International Centre for Settlement of Investment Disputes (ICSID), formed by 158 countries under a 1965 multilateral treaty.

The dispute emerges from Guinea's failure to recognise the facts related to the so-called Axis mine in Guinea. On May 14, 2025, on live television, Guinea suddenly terminated over fifty mining permits, claiming they were all non-operational or underutilised mines. It did so without notice to or discussion with Axis Minerals or its shareholders.

Axis International's subsidiary Axis Minerals Resources SA has been operating in Guinea since 2013, securing an exploration permit in September that year and a mining permit in 2018 after conducting exploration, feasibility studies and early development works, company officials said.

It partnered with an operator and invested over USD 250 million in infrastructure, including a 75-km road, six beneficiation plants and several bridges.

"Our investment was stripped away without notice, without a word of discussion or dollar of compensation, on grounds that simply are not factual. Our former partners have reportedly reached an agreement with the authorities to resume operations after offering to pay the government the royalties belonging to Axis Minerals.

"This case sends a deeply troubling signal to international mining investors. The spotlight is on Guinea. International investment protections exist for precisely this situation," Axis International's Founder, Director and Chairman, Pankaj Oswal, said in the statement. PTI SID HVA