Mining Firms Face Suspension Over Unpaid Community Contributions in DRC

DRC Mining Firms Face Suspension Over $2.77M in Unpaid Community Contributions

Three mining companies, including the Anhui-Congo Mining Investment Company (SACIM), are facing possible suspension following a scathing report from the Court of Auditors, which revealed their failure to comply with mandatory community development payments.

According to the June audit, SACIM and two other firms—OM Metal Resources and the Lubumbashi Tailings Processing Company—have neglected to pay the legally required 0.3% of their turnover, funds designated to support development projects in the communities where they operate.

SACIM, already grappling with financial instability, has been severely affected by past restrictions on diamond sales that limited its buyers to a handful of approved partners.

Although these restrictions have since been lifted, SACIM’s operations remain stalled. Workers have not been paid for over 13 months and have held several strikes in protest.

At SACIM’s primary site in Miabi, located in Kasaï Oriental province, local civil society organizations report that no community contributions have been received since the establishment of a specialized oversight body in 2022.

The Court estimates SACIM owes nearly $700,000 in unpaid fees intended for local development.

Collectively, the three companies owe approximately $2.77 million in community contributions for the period between 2018 and 2023, despite generating substantial revenue during those years.

The Court criticized the Supervisory Committee for failing to impose sanctions, even after repeated violations.

It rejected arguments that leniency was necessary to preserve the investment climate, emphasizing that legal compliance must not be treated as an obstacle to doing business—especially since the companies continue to meet other tax obligations.

The Court has recommended that the Supervisory Committee, under the authority of the Minister of Mines, enforce Article 292 of the Mining Code and suspend the operations of all three companies until their debts are fully paid.

SOURCE:bankable.africa