DR Congo’s tax battle with Glencore puts strategic copper mine at centre of US minerals push

Congolese tax authorities last week sealed offices at Kamoto Copper Company (KCC), the mining complex operated by Glencore in Kolwezi, after negotiations over an alleged tax liability failed to produce a settlement.

The enforcement action marks the latest escalation in a dispute that has simmered for months. While the move targeted administrative offices, Glencore says mining and processing operations continue uninterrupted, limiting the immediate impact on production.

The company also said it remains engaged in discussions with the Congolese government to resolve the matter.

At the centre of the dispute are allegations by the DRC’s Direction Générale des Impôts (DGI) that Glencore used transfer pricing arrangements to reduce taxable income from its Congolese operations.

Authorities have alleged the company owes billions of dollars in unpaid taxes, although the exact amount has not been publicly confirmed.

Kamoto is one of Africa’s most valuable mining assets and a cornerstone of the global energy transition.

Together with Glencore’s nearby Mutanda mine, it is a major producer of copper and cobalt, minerals essential for electric vehicle batteries, renewable energy infrastructure and defence technologies.

The DRC is the world’s largest producer of cobalt and one of its biggest copper producers, making developments at its largest mines closely watched by governments, manufacturers and investors seeking secure supplies of critical minerals.

The dispute also comes as Orion Critical Minerals, a consortium backed by the US International Development Finance Corporation (DFC), negotiates to acquire a 40% stake in Glencore’s interests in both Kamoto and Mutanda.

The proposed transaction forms part of Washington’s broader effort to diversify supplies of critical minerals at a time when China dominates much of the global processing and refining industry.

Any prolonged legal uncertainty could complicate those negotiations, as investors typically seek clarity over potential tax liabilities before committing billions of dollars to mining acquisitions.

The developments have already drawn the attention of President Félix Tshisekedi, who has reportedly instructed government ministries and state agencies to prioritise dialogue with investors while avoiding unpredictable enforcement actions that could undermine confidence in the country’s mining sector.

He also ordered the removal of security personnel stationed unlawfully at mining sites, signalling a desire to balance tax enforcement with investor confidence.

Mining remains the backbone of the Congolese economy, accounting for the overwhelming majority of export earnings and providing a vital source of government revenue.

As demand for critical minerals accelerates, Kinshasa has sought to ensure the country captures a larger share of the wealth generated from its vast natural resources while continuing to attract foreign investment.

For Glencore, the latest confrontation adds to a growing list of regulatory challenges in the DRC.

In April, the company agreed to pay $60 million to settle a separate dispute involving alleged insurance fraud, underscoring the government’s increasingly assertive approach towards multinational mining companies.

For now, Kamoto continues to operate, but the dispute extends far beyond a disagreement over taxes.

Its outcome will be closely watched by global mining investors, governments and manufacturers alike.

Beyond determining how one of the world’s largest commodity traders resolves its differences with the DRC, the case could shape investor confidence in Africa’s critical minerals sector and influence how future multibillion-dollar investments are structured in one of the world’s most strategically important mining jurisdictions.