Ecofin | 16 March 2026
Guinea faces second arbitration in six months over revoked mining permits
par Aurel Sèdjro Houenou
Falcon Energy Materials, a UAE-based company, said on Monday it had initiated international arbitration proceedings against Guinea, alleging the “illegal expropriation” of its Lola graphite project. The company is seeking $100 million in compensation, following a similar case launched by fellow Emirati firm Axis Minerals in December 2025.
In May 2025, Guinea drew significant attention in African mining circles when it launched a campaign to clean up mining licences, revoking several exploitation permits. It was in that context that Falcon said it learned of the unilateral withdrawal of the mining permit for its Lola project. The company said it had sought an amicable resolution with Guinean authorities, but the lack of any response ultimately led it to initiate arbitration proceedings.
The case was filed with the International Centre for Settlement of Investment Disputes (ICSID), a World Bank Group institution. Falcon is basing its claims on the bilateral investment treaty between Guinea and the United Arab Emirates. The $100 million sought is intended to cover both the loss of assets linked to the Lola project and additional damages resulting, according to the company, from decisions taken by the Guinean authorities.
While Falcon Energy Materials’ $100 million claim is far below the $28.9 billion sought by Axis Minerals, both companies are invoking similar grounds. Like Falcon, Axis accuses the Guinean state of illegally withdrawing its mining rights, in that case over its bauxite mine. The status of that separate proceeding remains unclear, as the Guinean government has not issued any official communication on the matter.
What happens next?
Without official clarification from the authorities, it remains difficult to determine the precise grounds for these disputes. Axis Minerals has said the withdrawal of its permit was justified by the alleged underexploitation of its mine. Several other disputes of a broadly similar nature are also hanging over Guinea’s mining sector, including one involving Emirates Global Aluminium’s (EGA) bauxite exploitation permit.
Although EGA has expressed its intention to seek redress through “any legal action,” no proceedings have yet been filed. Reuters reported in December 2025 that talks between EGA and the Guinean government were under way toward an out-of-court settlement. That information has since received neither confirmation nor any concrete follow-up from the parties involved.
In the meantime, the future of several major industrial projects remains uncertain. After EGA’s licence was revoked, its mine was subsequently transferred to state-owned company Nimba Mining. The fate of the assets held by Axis and Falcon also remains unclear. Lola is a graphite project still under development, while Axis’ mine is already operational and, according to the operator, the country’s second-largest bauxite mining site.
How Guinean authorities respond to these various proceedings will be key to how the cases unfold. Their potential impact on the country’s broader mining sector also warrants close attention. Although ICSID arbitration is often the preferred route for resolving mining disputes, such proceedings can last several years and generate significant financial costs for all parties involved.
