DRC Mining Firms Accused of Withholding $2.7M Meant for Community Development
DRC Court of Auditors: Mining Firms Owe $2.7 Million to Local Communities Under Mining Code
Article 258 bis of the Democratic Republic of Congo’s Mining Code requires mining companies to allocate at least 0.3% of their annual turnover to community development projects.
However, a recent investigation by the Court of Auditors revealed that several major operators failed to comply with this legal obligation between 2018 and 2023—despite recording significant revenues.
According to the report, Om Metal Resources (OM), Société Anhui-Congo d’Investissement Minier (SACIM), and Société de Traitement du Terril de Lubumbashi (STL) withheld a total of USD 2,774,862.44 that should have been directed to specialized organizations managing community projects. This failure, the Court stated, has directly harmed local populations by depriving them of vital development initiatives.
“These companies did not pay the required allocation despite achieving turnover during the period under review, thus prejudicing local communities. This situation is due to the bad faith of the companies concerned and the laxity of the Supervisory Committee in mobilizing the allocation,” the Court of Auditors’ report emphasized.
Supervisory Committee’s Response
The Supervisory Committee confirmed the violations, stating:
“The failure to pay the minimum 0.3% turnover allocation was noted for these three companies, which, to this day, categorically refuse to comply.”
In response, the Committee announced that it had issued formal notices to the companies. It warned that continued non-compliance could result in suspension of operations, as already enforced against other mining firms such as Shituru, Commus, and Ruashi.
Court Recommendations
To ensure enforcement, the Court of Auditors recommended that the Supervisory Committee, under the authority of the Minister of Mines, suspend the activities of OM, SACIM, and STL in accordance with Article 292 of the Mining Code until the outstanding payments are settled.
Why the Allocation Matters
The 0.3% allocation is not a tax but a dedicated community development fund drawn from a mining company’s annual gross revenues. Established under the 2018 reform of the Mining Code, it reflects the government’s intent to make mining companies more socially accountable.
Its objective is to reduce the stark disparity between the growing profits of mining firms—fueled by rising mineral exports and higher international metal prices—and the persistent poverty of local communities directly impacted by mining operations.
