Under the 2018 mining code, mining companies in the DRC are required to allocate 0.3% of their annual revenues to community development initiatives. The failure to comply by nearly 70% of companies, according to Attorney General Jean Chris Mubanga Musuyu, represents a substantial loss of earnings for the Congolese state. The audit specifically identified major cobalt and copper producers—key minerals for global battery production—responsible for underreporting about $10 billion of the total amount. Among the companies named were subsidiaries of industry heavyweights such as Glencore’s Kamoto Copper, CMOC’s Tenke Fungurume Mining, Ivanhoe’s Kamoa-Kakula mine, SICOMINES, Eurasian Resources Group’s Metalkol, and Ruashi Mining.
Glencore, the world’s second-largest cobalt exporter, maintained that its Kamoto Copper subsidiary fully complied with its mining code obligations. The company attributed the discrepancy to differing interpretations of the effective date of the law, highlighting that its community levy was calculated on half-year revenues and validated by auditors and the local development agency. CMOC and other major groups did not respond to requests for comment.
The uncovered $16.8 billion revenue underreporting not only sheds light on the opaque financial practices in a sector pivotal to the DRC’s economy but also underscores the urgent need for stricter oversight. The Court of Auditors recommended the suspension of non-compliant companies, the initiation of legal proceedings, mandatory revenue audits, and tighter enforcement of mining regulations. Civil society actors have also voiced strong calls for accountability, emphasising that the community levy is intended to transform mining from mere resource extraction into a significant force for local development and poverty alleviation.
The DRC, holding vast reserves of cobalt, copper, lithium, and uranium, has an average annual income of approximately $580 per individual. The revelation of this financial underreporting highlights ongoing challenges in managing mineral wealth to achieve inclusive economic growth and development in the country.