A state audit has found that mining companies operating in the Democratic Republic of Congo (DRC) under-reported $16.8bn in revenue between 2018 and 2023, reported Reuters, which has seen the audit report.
This discrepancy may have reduced funds meant for government and local communities. As per the 2018 mining code, companies are required to contribute 0.3% of annual revenue to community development funds.
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The June financial audit, which was carried out by the Court of Auditors, found that the mining companies declared $81.4bn to development funds, but reported $98.2bn to tax authorities. This resulted in a $50.4m shortfall in contributions to development funds, impacting schools, clinics and water systems.
The DRC, a leading producer of cobalt and copper, is among the world’s poorest countries.
The audit identified that companies including Ivanhoe’s Kamoa-Kakula mine, Glencore’s Kamoto Copper, Eurasian Resources Group’s Metakol, Ruashi Mining, SICOMINES and CMOC’s TFM together under-reported $10bn, according to the media outlet.
Glencore, the second-largest cobalt exporter, stated its subsidiary Kamoto Copper fully met obligations under the mining code. The company noted that the discrepancy arose from different interpretations of when the law was implemented. Glencore added that its 0.3% community levy was based on half-year revenues, validated by auditors and the local development agency.
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By GlobalDataOther companies like CMOC, SICOMINES, Ivanhoe, Eurasian and Ruashi did not respond to requests for comments, reported Reuters.
Attorney General Jean Chris Mubanga Musuyu said: “Practically, 70% of the companies did not respect this regulation… and it is an enormous loss of earnings for the Congolese state.”
The Court of Auditors recommended suspending non-compliant companies, pursuing prosecutions, conducting revenue audits and enforcing stringent monitoring.
The DRC’s average annual income is around $580 per person despite vast reserves of lithium, uranium and other minerals.
