Swiss mining group Glencore is facing a $4.7 billion revised tax bill from the Democratic Republic of Congo’s tax authority, according to a report published by Africa Intelligence on April 16. The assessment targets two of the company’s subsidiaries operating in the country: Kamoto Copper Company (KCC) and Mutanda Mining.
The Congolese Directorate General of Taxes (DGI) is seeking $3 billion from KCC and $1.7 billion from Mutanda Mining for the 2022 and 2023 fiscal years. The DGI accuses the firms of underreporting their financial results in an effort to reduce their tax obligations.
KCC operates the Kamoto copper and cobalt mine in Lualaba province as a joint venture with Gecamines, the state-owned mining firm which holds a 25% stake. The tax dispute has prompted efforts by Glencore to negotiate a settlement, including a recent meeting at the finance ministry, which reportedly ended without agreement.
Persistent regulatory disputes and weakening profitability in its Congolese operations have reignited speculation that Glencore may exit the country. According to the report, a Saudi investor expressed interest in acquiring the company’s Congolese assets late last year, but Glencore rejected the offer as undervalued and has not moved forward with any divestment plans.
