Mining companies operating in the Democratic Republic of Congo (DRC) failed to declare a combined $16.8 billion in revenue between 2018 and 2023, according to a new audit by the country’s Court of Auditors. The findings highlight widespread discrepancies in the reporting of income and taxes within the DRC’s lucrative mining industry, which remains the world’s leading source of cobalt and a major exporter of copper. The audit, conducted under the 2018 mining code, found that several companies significantly understated revenues meant to fund local development initiatives, as reported by Reuters.
The review compared figures declared to community development funds with those submitted to tax authorities. It found that while companies reported $81.4 billion to local development agencies, they declared $98.2 billion in taxable income, resulting in an estimated $50.4 million shortfall in community development contributions. These funds are designated for building schools, clinics, and essential infrastructure in mining regions, the audit stated.
The report named several major operators, including CMOC’s Tenke Fungurume Mine, Glencore’s Kamoto Copper Company, Ivanhoe Mines’ Kamoa-Kakula project, SICOMINES, Eurasian Resources Group’s Metakol, and Ruashi Mining. Together, these firms accounted for roughly $10 billion of the underreported amount. Glencore contested aspects of the report, stating that differing interpretations of when certain levies took effect may have contributed to the discrepancies, as highlighted by Bloomberg.
The Court of Auditors has urged the Congolese government to strengthen oversight mechanisms, mandate regular audits, and penalize non-compliant firms. Analysts say stricter enforcement could not only recover lost funds but also restore investor confidence in the DRC’s mining governance, a critical step for one of Africa’s most resource-rich yet economically fragile nations.
