Pankaj Oswal’s Axis International Ltd Initiates USD 28.9 billion World Bank Arbitration Against the Republic of Guinea Following Illegal Revocation of Its Mining Permit
Mining permit of Guinea’s second-largest bauxite producer unlawfully terminated.
USD 28.9 billion claim based on Guinea – UAE Bilateral Investment Treaty and Guinea’s 1995 Investment Code.
Damages are based on proven reserves, a rigorous valuation model and well-established principles of international and Guinean law.
Arbitration claim is the third-largest investment treaty claim ever filed and the second-largest claim filed before the World Bank.
If it fails to pay compensation or refuses to participate, Guinea risks losing multilateral donor support and access to financial markets amid high-stakes dispute.
On Christmas Day, Axis International Ltd commenced an arbitration against the Republic of Guinea before the World Bank. The company is seeking at least USD 28.9 billion in compensation after Guinea unlawfully terminated its rights to the country’s second-largest operating bauxite mine, with proven reserves of more than 800 million tonnes. Axis International 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% of Axis Minerals Resources SA, a Guinean company with rights to a bauxite mine in the region of Boffa, Guinea.
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 arbitration is being managed by the International Centre for the Settlement of Investment Disputes (ICSID), an arm of the World Bank formed by 158 countries under a 1965 multilateral treaty.
Axis International’s Founder, Director, and Chairman, Mr Pankaj Oswal, states: “Axis entered Guinea in 2013 with a long-term commitment to the country, investing capital, infrastructure, and people. Over more than a decade, the project developed into a fully operational mine contributing materially to Guinea’s economy.”
Ms Vasundhara Oswal, Director General of Axis Minerals, adds: “The mine was operating at scale and supporting 5,000 direct and indirect workers and their families in the Boffa region. The sudden termination of the permit has had a direct and damaging impact on the people who depended on this project for their livelihoods.”
The dispute emerges from Guinea’s failure to recognise the facts related to the so-called Axis mine in Guinea. On 14 May 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.
“The problem,” says Axis International’s counsel Mr Gunjan Sharma, a Partner at Volterra Fietta, “is that the Axis mine was operating. In 2024, it was the country’s second-largest producer of bauxite ore exports. So the purported justification for terminating the mining permit – that the mine was not operating, that it was underutilised – is not based on reality. As we will show the World Bank tribunal, Guinea is liable for the entire amount of damages caused by its knowingly unlawful acts. That is USD 28.9 billion, at a minimum.”
Axis International’s counsel, Mr Robert Volterra at Volterra Fietta, continues: “Guinea should pay close attention to this important filing. ICSID awards are serious and compulsory. If they are not paid when due, these awards can adversely impact lending from the World Bank and other multilateral banks, as well as from private sources”.
Axis International’s subsidiary, Axis Minerals Resources, had been in Guinea since 2013. It obtained an exploration permit in September 2013. It conducted exploration works, organised a feasibility study, performed early-stage project development, was granted a mining permit in 2018 and partnered with an operator soon thereafter. The company’s efforts led to over USD 250 million in infrastructure development, including the construction of a 75-kilometre road, six operational beneficiation plants, and several bridges.
Axis International’s Founder, Director, and Chairman, Mr Pankaj Oswal, made sure the mine became operational by remaining in-country even during the Ebola epidemic and the COVID-19 pandemic.
The mine’s first bauxite exports occurred in 2020 and increased year-on-year. In 2024, 18 million tonnes of bauxite were produced from the mine, making it the country’s second-largest producer. In the weeks leading up to the revocation of its permit, output stood at 169,000 tonnes per day. By 14 May 2025, Axis had already exported approximately 16 million tonnes of bauxite, putting it on track to produce 48 million tonnes in 2025. Axis had and still retains title to the bauxite once it is extracted from the mine.
Despite these facts, the Government in Guinea terminated the mine for being “non-operational”, seized its mining equipment and froze its bank accounts.
Axis International’s Founder, Director and Chairman, Mr Pankaj Oswal concludes, “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.”
By Infowire
