Congo audit uncovers $16.8bn in unreported mining revenue
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The Democratic Republic of Congo is facing renewed scrutiny over its vast mining sector following revelations of a multibillion-dollar shortfall in reported revenues. According to a recent audit by the national Court of Auditors, mining companies operating in the country failed to disclose $16.8 billion in earnings between 2018 and 2023.
The discovery, made public in October, has raised alarms across government, civil society and the investment community. The audit found that while mining firms declared $81.4 billion in revenue for the purposes of community development fund contributions, they reported $98.2 billion to tax authorities. The difference implies a $50.4 million underpayment in mandated community contributions.
Under the 2018 mining code, companies are required to contribute 0.3 percent of their annual revenue to local development funds. These funds are designed to finance essential infrastructure in mining regions, such as schools, health clinics and water systems. For one of the world’s poorest countries, where the average annual income is below $600, this revenue stream is not simply a legal obligation but a crucial mechanism for development.
Major operators implicated
The report names several high-profile operators as being among those responsible for the discrepancy. These include subsidiaries of multinational giants such as Glencore and CMOC, which operate major cobalt and copper extraction facilities in the country. Together, the companies named in the report were responsible for underreporting approximately $10 billion in revenue.
Glencore’s Kamoto Copper Company responded to the allegations by stating that it is in full compliance with local laws. The firm suggested the variance was due to differing interpretations of when the 2018 mining code came into effect. CMOC did not comment on the findings.
Attorney General Jean Chris Mubanga Musuyu has stated that approximately 70 percent of firms failed to comply with the law. He called the gap a significant loss for the nation and confirmed that legal proceedings are being considered. The audit also recommends suspending the operations of noncompliant firms and tightening enforcement mechanisms.
Fragile trust and structural risk
The findings reignite concerns about the governance of Congo’s mineral wealth. While the country holds some of the world’s largest reserves of cobalt and copper, which are critical to the global energy transition, most Congolese people continue to live without access to reliable public services. The audit underscores the challenge of turning mineral wealth into broad-based economic development.
For international investors, the revelations represent more than just a local controversy. They point to material governance risks in one of the most important jurisdictions for critical minerals. Without consistent regulatory enforcement and financial transparency, operators and their shareholders face heightened exposure to legal, reputational and operational risks.
Civil society groups have long argued that the 0.3 percent levy is too modest to drive transformational change. Yet even this limited obligation is widely unmet. Critics now warn that unless the government reinforces compliance, the community fund will continue to function as a symbolic gesture rather than a vehicle for real impact.
Reform or repetition
The Court of Auditors has recommended several key reforms. These include the introduction of standardised financial reporting templates, the use of third-party audits, and the creation of an inter-agency task force to cross-verify financial disclosures. There is also growing support for transparency requirements that would compel companies to disclose development fund payments publicly and in real time.
For major downstream buyers in the tech and electric vehicle sectors, the findings may force a reconsideration of sourcing strategies. As global expectations for environmental and social responsibility rise, so too will the pressure on mineral supply chains to demonstrate traceability and accountability.
Whether this audit becomes a catalyst for structural reform or another missed opportunity will depend largely on how Congolese authorities and industry leaders respond. But the signal is clear. The age of unchecked extraction is coming under increased global and domestic scrutiny.
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