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Jinchuan Group International Resources Co. has uncovered an alleged $145 million fraud scheme at its copper and cobalt operations in the Democratic Republic of Congo, revealing years of fabricated invoices, questionable procurement, and suspicious cash payments.
The Hong Kong-listed miner said an independent investigation into its Ruashi Mine operations found that former local employees exploited weak internal oversight between 2019 and 2024. The workers allegedly diverted company funds through suppliers and intermediaries that investigators determined had “no apparent business purpose.”
According to a company filing, investigators identified approximately $137.4 million in payments to 12 suppliers linked to the scheme. An additional $7.1 million was transferred directly to the personal bank account of a former employee.
The probe also reviewed $66.8 million in expenditures connected to “government-related affairs” in the DRC. This included payments routed through a third-party intermediary hired to negotiate tax disputes and penalties with local authorities. Jinchuan noted that investigators found no evidence that company employees directed the intermediary to make illegal payments to government officials, nor was senior management at the parent company linked to the misconduct.
Jinchuan’s special investigation committee concluded the fraud was contained primarily within the Ruashi Mine’s local workforce, who took advantage of weak procurement controls and limited financial oversight.
Trading in Jinchuan International shares has been suspended since March 2025 following delays in publishing its financial results. The company said the suspect payments, which were previously recorded as mining and operating expenses, will be reclassified as “other losses.” The adjustment is not expected to materially alter historical profit figures.
Jinchuan has reported the matter to prosecutors in the DRC, dismissed or suspended the implicated employees, and cut ties with the connected suppliers as it moves to tighten controls and restore investor confidence.
