DR Congo regulator finds $20 billion paid to non-eligible mining subcontractors
The Congolese subcontracting authority says fourteen major mining firms paid at least $20 billion to suppliers that do not meet local ownership rules.
Recent checks by DR Congo’s subcontracting regulator uncovered that fourteen large mining operators, among them Glencore’s local units, Ivanhoe Mines and the Chinese-Congolese joint venture Sicomines, paid a minimum of $20 billion to subcontractors that fail to satisfy the 2017 law requiring at least 51% Congolese ownership. Head of the authority, Juan Ted Beleshayi, said the agency has already cancelled about 1,800 contracts with firms lacking proper registration, including 1,540 tied to Glencore subsidiaries.
This month’s inspections will probe the true owners, decision-makers and bank-account controllers of the suppliers, with non-compliant firms risking closure. The crackdown aims to ensure genuine local participation as the country courts new mining investment, especially from the United States, while critics warn that simply cancelling contracts will not address the limited capacity of Congolese firms to take over large projects.
Why it matters
It shows how DR Congo is enforcing local ownership rules in its lucrative mining sector, affecting global supply chains and foreign investment.
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