AN independent investigation has found that nearly $145m was misappropriated from Jinchuan Group International Resources’ copper and cobalt operations in the Democratic Republic of Congo through fabricated invoices, fictitious procurement deals and unauthorised cash payments.
Citing an exchange filing by the Hong Kong-listed company, Bloomberg News said the probe centred on Ruashi Mine where former local employees exploited poor internal controls over several years to channel funds to suppliers and intermediaries with no legitimate commercial purpose.
Investigators established that the alleged fraud occurred largely between 2019 and 2024, a period when surging copper and cobalt prices drove the mine to aggressively expand ore procurement to lift output, said the newswire. They identified $137.4m in payments to 12 suppliers and a further $7.1m transferred to a former employee’s personal bank account as part of what they described as a misappropriation scheme.
The investigation also flagged $66.8m in spending on “government-related affairs” in Congo, including cash disbursements through a third-party intermediary engaged to handle tax disputes with local authorities.
Investigators found no evidence that illegal payments were made to government officials, nor that senior management at the listed company had knowledge of or involvement in the misconduct, said Bloomberg News.
Jinchuan said it had reported the matter to Congolese prosecutors, dismissed or suspended implicated staff and severed ties with several suppliers connected to the scheme. The suspect payments, previously booked as operating and mining expenses, will be reclassified as losses, though the company said the change would not materially affect historical profit and loss figures.
