An Emirati mining company has launched arbitration proceedings at the World Bank after Guinea withdrew its licence to operate one of the country’s largest bauxite mines, escalating a dispute that highlights rising tensions between the West African state’s junta and foreign investors.
Axis International said on Monday it had filed a case with the International Centre for Settlement of Investment Disputes (ICSID), a Washington-based arbitration body under the World Bank, seeking US$28 billion in compensation from the Guinean state.
The company, headquartered in the United Arab Emirates, said Guinea’s authorities had unlawfully cancelled its mining rights despite repeated efforts to reach an amicable settlement.
“Axis International has made several attempts to resolve this dispute through dialogue, all of which were ignored by the authorities,” the company said in a statement.
Guinea, which has been ruled by a military junta since a coup in September 2021, has over recent months withdrawn dozens of mining licences held by both domestic and international operators. The cancellations have affected companies extracting bauxite, gold, iron ore and diamonds, as the authorities seek to reassert control over the strategic sector.
Axis International had operated Guinea’s second-largest bauxite mine since 2010, with estimated reserves of more than 800 million tonnes, according to the company. Bauxite is the primary raw material used in aluminium production.
The Guinean government has argued that several licences were revoked because projects were either inactive or under-exploited. Axis International said it firmly rejected claims that its mine was non-operational, insisting it had complied with its contractual obligations.
The dispute comes as junta leader Mamady Doumbouya intensifies efforts to overhaul Guinea’s mining sector, which accounts for a large share of export revenues but has long been criticised for delivering limited benefits to the wider population.
Doumbouya, a former French Foreign Legion officer who seized power four years ago, has repeatedly said that Guinea must gain greater value from its vast mineral wealth. Authorities have pledged to renegotiate contracts, enforce stricter timelines on project development and prioritise local processing.
In November, the government launched production at Simandou, one of the world’s largest untapped iron ore deposits, in a high-profile ceremony attended by senior officials and foreign partners. The project, located in southeastern Guinea, is seen as central to the junta’s economic strategy.
Guinea is among the world’s leading producers of bauxite and holds some of the largest reserves globally. The country also has significant deposits of iron ore, diamonds, gold and uranium.
Despite this resource wealth, more than half of Guinea’s population lives below the poverty line, according to World Bank estimates. Many Guineans say the mining boom has failed to translate into improved living standards, particularly outside the capital.
Experts attribute this to limited investment in local infrastructure and economic development, weak regulatory enforcement and corruption, as well as legal frameworks that have historically favoured mining companies over the state.
The government says its recent actions are aimed at correcting those imbalances. Critics, however, warn that abrupt licence withdrawals and contract disputes could deter foreign investment at a time when Guinea needs capital to develop infrastructure and diversify its economy.
Axis International’s appeal to ICSID adds to a growing number of high-stakes legal challenges involving African states and foreign investors. Arbitration cases can take years to resolve and often strain relations between governments and the private sector.
The legal move also comes amid heightened political tensions in Guinea. Since taking power, Doumbouya’s junta has cracked down on civil liberties, banning protests and detaining or prosecuting opponents, while others have fled into exile.
Doumbouya is the frontrunner in a presidential election held on Sunday, with results still being counted. The vote was organised under tight security and amid restrictions on public demonstrations.
For investors, the outcome of the Axis International case will be closely watched as a test of Guinea’s approach to contract enforcement and dispute resolution under military rule.
While the junta insists it is committed to reforming the mining sector in the national interest, the arbitration underscores the risks facing foreign firms operating in a country where political authority and economic policy are undergoing rapid change.
