DRC Mining Companies Under-Reported $16.8 Billion in Revenue, Audit Reveals

Widespread Revenue Gaps Uncovered in DRC Mining Sector

A recent state audit revealed that mining companies in the Democratic Republic of Congo (DRC) under-reported $16.8 billion in revenue from 2018 to 2023. The Court of Auditors, in a report reviewed by Reuters, found significant discrepancies between the amounts reported to development funds and tax authorities.

Under the DRC’s 2018 mining code, companies must contribute 0.3% of annual revenue to local community development. The audit showed that while companies reported $98.2 billion to tax authorities, they only declared $81.4 billion for development. This discrepancy caused a $50.4 million shortfall for essential community services like schools, clinics, and clean water projects.

The DRC, rich in cobalt, copper, lithium, and uranium, is one of the world’s poorest countries. With an average income of just $580 per person, these missed funds have a severe impact on local development.

DRC Mining Revenue Audit Exposes Industry Non-Compliance

The audit named several prominent mining companies, including Ivanhoe Mines’ Kamoa-Kakula, Glencore’s Kamoto Copper, Eurasian Resources Group’s Metakol, Ruashi Mining, SICOMINES, and CMOC’s Tenke Fungurume Mining (TFM). These companies under-reported over $10 billion in revenue.

Glencore, the world’s second-largest cobalt exporter, defended its position, stating the discrepancies stemmed from different interpretations of the mining code’s implementation. Glencore added that its community contributions were based on half-year revenues. These figures were audited and validated by local agencies.

Other companies like CMOC, Ivanhoe, Eurasian Resources, Ruashi, and SICOMINES did not respond to inquiries. DRC Attorney General Jean Chris Mubanga Musuyu stated that 70% of mining firms failed to comply with the regulation. He called this a “massive loss for the Congolese state.”

The Court of Auditors has recommended urgent action: suspending non-compliant companies, prosecuting offenders, and conducting independent revenue audits. These actions aim to recover lost funds and restore confidence in the sector.

SuperMetalPrice Commentary:

The DRC mining revenue audit is a wake-up call for both investors and regulators. As demand for critical minerals like cobalt and copper rises, the need for transparent and fair reporting grows. Community reinvestment and fair taxation must become standard practice, not exceptions. Without stricter oversight and reforms, under-reporting will continue to undermine both government revenues and local development. Investors should watch the situation closely, as it could reshape both market access and risks in one of the world’s most resource-rich regions.