DRC Mining Communities Deprived of $198 Million Due to Industry Underreporting and Non-Compliance 1Mining in DRC 

DRC Mining Communities Deprived of $198 Million Due to Industry Underreporting and Non-Compliance

Local communities in the Democratic Republic of Congo (DRC) lost approximately $198 million in funding between 2018 and 2023, due to widespread underreporting, partial payments, or complete non-payment of a mandatory community development levy by mining companies. This is according to a June 2025 audit report released by the Court of Auditors.

By law, mining companies operating in the DRC are required to allocate 0.3% of their annual turnover to support local community development projects in mining areas. However, the audit uncovered serious discrepancies in reported revenues and payments.

Key Findings:
Underreporting of turnover resulted in a $154.7 million shortfall. Mining companies reported inconsistent revenue figures to DOTS—the entities managing community allocations—and the Directorate General of Taxes (DGI).

Partial payments left an additional $40.4 million unpaid.

Non-payment by certain companies created a further $2.8 million deficit.

The report specifically names several major operators as being involved in the shortfalls, including:

Kamoa Copper (Ivanhoe Mines and Zijin Mining)

Kamoto Copper Company (Glencore)

Sicomines (a consortium including Crec, Sinohydro, and Zhejiang)

Tenke Fungurume Mining (China Molybdenum Co., CMOC)

Weak Oversight and Accountability
The Court of Auditors criticized the persistent inaction by successive Ministers of Mines, stating that their failure to enforce the legal requirements contributed to the ongoing deprivation of community funds.

The report recommends that the Supervisory Committee compel defaulting companies to pay what they owe or face sanctions—up to and including suspension of operations for gross misconduct.

The Court also called for the creation of a systematic verification mechanism to reconcile turnover figures reported to the DGI and DOTS, ensuring transparency and preventing future abuses.

This report sheds light on serious governance failures in the DRC’s mining sector and underscores the urgent need for reforms to guarantee that local communities benefit from the country’s vast natural resource wealth.

SOURCE:bankable.africa

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