Jinchuan Group International Resources has uncovered an alleged US$145 million fraud scheme linked to its copper and cobalt mining operations in the Democratic Republic of the Congo, following an internal investigation that exposed years of questionable procurement transactions and suspicious financial transfers.
According to disclosures from the Hong Kong listed mining firm, the alleged irregularities were discovered at its Ruashi Mine operations, where former local employees are accused of exploiting weak procurement controls between 2019 and 2024 to divert funds through questionable suppliers and intermediaries.
The investigation identified approximately $137.4 million in payments made to 12 suppliers that investigators say had no clear or legitimate business justification. An additional $7.1 million was allegedly transferred directly into the personal bank account of a former employee, further deepening concerns about internal oversight failures at the site.
Company documents also revealed that investigators examined around $66.8 million in expenses linked to what were described as “government related affairs” in Congo. These payments were reportedly routed through a third party intermediary engaged to handle tax disputes and penalties with local authorities, although the company stated there was no evidence that employees were instructed to make illegal payments to government officials.
Jinchuan said its special investigation committee concluded that the alleged scheme was primarily driven by operational staff at the mine who took advantage of weak financial controls and limited oversight structures. The company added that there is no indication senior management at its parent company in Hong Kong was involved in or aware of the misconduct.
The mining firm has already begun taking corrective action, including suspending or dismissing implicated employees and terminating relationships with several suppliers connected to the case. It has also reported the matter to prosecutors in the DRC as part of ongoing legal and regulatory follow up.
The company further noted that the suspicious payments had previously been recorded in its accounts as mining and operating expenses but will now be reclassified as “other losses.” It said the adjustment is not expected to materially change previously reported profit figures, although it reflects the scale of the financial misstatement under review.
Trading in Jinchuan International’s shares has been suspended since March 2025 due to delays in financial reporting, adding further pressure on the company as it attempts to restore investor confidence and stabilise its governance framework.
The development highlights continuing governance and transparency challenges in parts of the extractive sector in Africa, particularly in high value minerals such as copper and cobalt, which are critical to global supply chains for electric vehicles and clean energy technologies.
Authorities in the DRC have been informed of the findings, and the company is expected to cooperate with any further investigations as it seeks to strengthen internal controls and prevent future financial misconduct.
