Escalation of Tax Dispute in Congo; Offices of Mining Giant “Glencore” Sealed
Tax authorities in the Democratic Republic of Congo, following unsuccessful negotiations over several billion dollars in tax debts, have sealed the administrative offices of a copper mine belonging to Swiss commodity giant "Glencore"—an action indicating the intensification of disputes between the Congolese government and the largest players in the country's mining industry.
According to a report by Ma’adan News, citing informed sources, the General Directorate of Taxes of the Democratic Republic of Congo (DGI) on Thursday closed the offices of “Kamoto Copper Co.” (KCC), a Glencore subsidiary, in the mining town of Kolwezi. Reports indicate that this action has so far not affected extraction operations or processing units at nearby mines, and copper and cobalt production continues.
Dispute Over Billions in Taxes
According to information received from sources who requested anonymity, the Congolese tax authority claims that the Swiss commodity giant owes billions of dollars in outstanding tax debts to the government. The sealing of the company’s offices came after efforts and negotiations between the two sides to reach a tax agreement and compromise proved fruitless. However, a Glencore spokesperson, rejecting the tax authority’s claims, has stated that the company continues dialogue with government officials to resolve this crisis.
Global Copper Market in the Shadow of Congo Developments
This tension comes at a time when the Democratic Republic of Congo, as the world’s second-largest copper producer and top cobalt supplier, plays a vital role in the global supply chain. The Kamoto mine, in which Glencore holds a 70% stake, produced approximately 190,000 tons of copper last year and aims to increase its annual production capacity to 300,000 tons.
Simultaneously, with the growth of artificial intelligence and the accelerating energy transition, demand for copper has risen sharply; the price of this strategic metal experienced 40% growth last year, and its rally continues into 2026.
Uncertainty Over Major US Deal
This tax crisis could also cast a shadow over ongoing investment agreements. Previously, in February, investment company Orion CMC, backed by the US International Development Finance Corporation, had reached a preliminary agreement to purchase a 40% stake in Glencore’s Kamoto mine and another copper-cobalt mine in Congo—a major deal whose finalization and official registration have yet to be completed.