Audit reveals 17bn revenue underreporting in Congo’s mining firms

A state audit has revealed that mining companies in the Democratic Republic of Congo failed to report a staggering $16.8 billion in revenue between 2018 and 2023. This massive underreporting potentially deprived the government and local communities of vital funds intended for development projects in one of the world's poorest nations.

The June audit by the Court of Auditors, made public in October, found that while companies declared $81.4 billion for a community development fund, they reported only $98.2 billion to tax authorities.

This discrepancy resulted in an estimated $50.4 million loss in contributions.

Under the 2018 mining code, firms are required to allocate 0.3% of their annual revenue to local development funds, which finance essential infrastructure like schools, clinics, and water systems.

Major producers implicated

The report specifically named several major producers of cobalt and copper—metals critical for the global green energy transition—as having underreported earnings by a collective $10 billion.

These include subsidiaries of giants like Glencore and CMOC, the world's largest cobalt exporter.

Glencore's Kamoto Copper Company claimed full compliance, attributing the discrepancy to a "differing interpretation" of the law's effective date.

CMOC did not respond to requests for comment.

Calls for accountability and reform

Congolese authorities are demanding action. Attorney General Jean Chris Mubanga Musuyu stated that "practically 70% of companies didn't adhere to this regulation," calling it a "significant loss of revenue."

The Court of Auditors has recommended suspending non-compliant companies and launching legal proceedings.

Civil society groups echo these calls, emphasizing that the community levy is meant to transform mining from mere extraction into a force for local upliftment, directly improving living conditions in a country where the average annual income is just $580.