In a major international investment dispute, a company controlled by Indian-origin billionaire Pankaj Oswal has launched a massive arbitration claim seeking a staggering $28.9 billion in compensation from the Republic of Guinea. The case, filed at the World Bank, centres on the alleged unlawful revocation of mining rights at one of the West African nation's largest bauxite operations.
The Core of the Multi-Billion Dollar Dispute
Axis International, based in the United Arab Emirates, formally submitted its claim to the International Centre for the Settlement of Investment Disputes (ICSID) on December 25. The company accuses Guinean authorities of abruptly terminating its mining permit, seizing its equipment, and freezing its bank accounts. This action was taken despite the mine being fully operational, according to the firm's statements.
The conflict revolves around a bauxite mine in western Guinea, operated through a local entity called Axis Minerals Resources SA. Axis International holds a dominant 85% stake in this venture. The company's journey in Guinea began in 2013, it secured the crucial mining permit in 2018, and commenced exports of the aluminium ore in 2020. Production reportedly grew consistently, reaching an impressive 18 million tonnes in 2024, which positioned it as the country's second-largest bauxite producer that year.
Guinea's Policy Shift and Widespread Permit Revocations
The dispute unfolds against a backdrop of significant political and economic change in Guinea. The nation, which has been under military rule since a coup in 2021, is the world's largest exporter of bauxite. Recently, its government has signalled a strong intent to move beyond raw material exports. Officials, including Mines Minister Bouna Sylla in November, announced plans to fast-track the development of domestic alumina refineries and iron ore pellet plants. This strategy aims to capture more value from its mineral wealth within the country.
In May 2025, this policy shift manifested in a sweeping action, as Guinean authorities revoked dozens of mining permits. The government cited reasons of non-operation or failure by companies to meet their contractual obligations. Axis International has strongly contested this characterization regarding its project. The company asserts its mine was operating at a significant scale and that the permit cancellation was executed without prior notice or any offer of compensation.
Broader Industry Impact and Oswal's Allegations
Axis International was not the only foreign company affected by Guinea's regulatory crackdown. Other major players, including UAE-based Emirates Global Aluminium, also saw their bauxite mining leases revoked. In some cases, these assets were later transferred to newly created state-owned enterprises.
In a pointed statement, Pankaj Oswal commented on the situation, suggesting that other affected parties had chosen a different path. "Our former partners have reportedly reached an agreement with the authorities to resume operations after offering to pay the government royalties belonging to Axis Minerals," Oswal claimed. This implies a contentious backdrop to the dispute over financial obligations and partnerships.
Pankaj Oswal is the son of the late Indian industrialist Abhey Kumar Oswal, founder of Oswal Agro Mills and Oswal Greentech. A chemical engineering graduate from the Manipal Institute of Technology, Pankaj has been instrumental in expanding the family's business interests on the global stage, with this high-stakes African venture being a central part of that international portfolio.
The outcome of this colossal arbitration claim will be closely watched by the global mining industry and international investors, as it tests the protections offered under bilateral investment treaties and highlights the risks associated with resource nationalism in key producing countries.
