Jinchuan Probe Flags Suspected Financial Misconduct at Congo Mining Unit

Jinchuan Investigates Alleged $145 Million Irregular Payments at DRC’s Copper-Cobalt Mine

Jinchuan Group International Resources Co says an independent investigation has identified approximately $145 million in suspected irregular payments linked to its copper and cobalt operations in the Democratic Republic of Congo.

The investigation focused on Ruashi Mine, where the company said former local employees may have exploited weak procurement and payment controls between 2019 and 2024 through questionable supplier transactions, cash payments, and disputed invoices.

In a filing released late Friday, Jinchuan said investigators reviewed financial transactions during a period when rising copper and cobalt prices drove increased demand for ore supplies and higher production targets at the mine.

According to the company, investigators identified $137.4 million in payments made to 12 suppliers and an additional $7.1 million transferred to the personal bank account of a former employee as part of what it described as an “alleged misappropriation scheme.”

The probe also reviewed $66.8 million in expenditures related to “government-related affairs” in Congo, including payments handled through a third-party intermediary retained to assist with negotiations over tax claims and penalties involving local authorities.

Jinchuan said investigators found no evidence that employees instructed the intermediary to make unlawful payments to government officials.

The company also stated that the investigation found no evidence that senior management at the Hong Kong-listed entity had direct knowledge of or involvement in the alleged misconduct.

Its special investigation committee attributed the suspected irregularities to actions by several employees at Ruashi Mine and weaknesses in local oversight systems.

Jinchuan International’s shares have been suspended from trading since March 2025 following delays in the publication of its financial results.

The company said the disputed payments had previously been recorded as operating and mining expenses but would now be reclassified as “other losses.” It added that the adjustment is not expected to materially alter previously reported profit and loss figures.

Jinchuan said the matter has been reported to prosecutors in Congo and that several employees linked to the investigation have either been dismissed or suspended.

The company also said it has ended business relationships with certain suppliers connected to the probe and is strengthening procurement and payment controls as part of efforts to resume trading of its shares.

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