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DR Congo insists China’s Huayou must pay $6 million compensation despite suspension of operations

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SRK Consulting has participated directly in DRC’s transition from state-led to internationally financed mining development, from its Lubumbashi practice established 16 years ago and from its other consulting practices worldwide

The Democratic Republic of Congo (DR Congo) has insisted that Chinese-owned mining company Congo Dongfang International Mining (CDM), a subsidiary of Zhejiang Huayou Cobalt, must pay $6 million in compensation to communities affected by a toxic wastewater spill in Lubumbashi, despite the company’s latest suspension of operations.

The country’s Ministry of Mines said the company’s decision to halt activities does not exempt it from its obligations to residents affected by the November 2025 environmental disaster.

CDM was ordered to pay $2 million each to the three affected communities of Kasapa, Kamatete and Kamisepe following the release of contaminated industrial wastewater from its facility in Lubumbashi, the country’s second-largest city.

In a statement issued on November 6, 2026, the ministry acknowledged that the compensation programme had been delayed, partly because of financial difficulties cited by the company.

However, it maintained that the obligations remained binding, regardless of the company’s financial position or operational status.

“Financial difficulties or the suspension of operations do not exempt the operator from its obligations toward affected populations,” the ministry said, adding that commitments made to local communities “must be honoured”.

The latest suspension follows an earlier three-month shutdown imposed by Congolese authorities after the November 2025 spill. The company has not publicly provided a detailed explanation for its latest decision to halt activities, while its parent company has also not issued a detailed response to the compensation dispute.

The incident occurred when wastewater escaped from a containment basin at CDM’s Lubumbashi facility. Investigations commissioned by the government found elevated concentrations of lead, arsenic and other toxic substances in nearby water sources, alongside evidence of environmental damage and biodiversity loss.

The basin, originally designed to retain water, was reportedly being used to store acidic solutions, raising questions about the company’s waste management practices.

Mines Minister Louis Watum Kabamba had previously criticised CDM’s storage and processing infrastructure, saying it did not meet international standards.

Compensation remains unpaid a year after the spill

One year after the incident, the promised $6 million community compensation package remains outstanding.

According to the Ministry of Mines, the compensation arrangement was formally stipulated in a January 17, 2026, letter, with each of the three affected neighbourhoods allocated $2 million.

However, CDM must first amend its formal community development commitments to include Kamisepe, which was initially excluded from the arrangement. The ministry said this process had not yet been completed.

Some emergency interventions were undertaken following the spill. The government reported that 350 households received emergency assistance, 612 people received medical care and 423 individuals were compensated. Cleanup operations were also conducted in contaminated areas and wells.

Nevertheless, civil society organisations say these interventions have not addressed the full extent of the damage.

Five organisations criticised the handling of the case on November 4, 2026, marking the first anniversary of the disaster. They alleged that promised compensation and several health and environmental measures remained outstanding.

The organisations also raised concerns that CDM had resumed operations without fully complying with the measures imposed by authorities. They called on the National Assembly to question Mines Minister Louis Watum Kabamba over the government’s handling of the matter.

The groups estimate that more than 2.5 million cubic metres of wastewater containing heavy metals and other harmful substances were released into the affected communities. They have called for the publication of the full investigation report, including ecotoxicological test results, to establish the extent of the damage.

Additional financial penalty and growing scrutiny

Beyond the $6 million owed to the communities, CDM is required to pay a separate $6.6 million penalty to the Congolese state treasury following the incident.

The dispute comes amid growing scrutiny of mining companies operating in DR Congo, the world’s largest cobalt producer and second-largest copper producer.

In a separate case, 27 residents living near a Chinese-controlled copper and cobalt mine are seeking $6.3 million in damages over alleged pollution and potential health risks.

The latest developments highlight the growing pressure on mining operators to strengthen environmental safeguards and meet their responsibilities to communities affected by industrial activities.

For the residents of Kasapa, Kamatete and Kamisepe, however, the central question remains whether the promised $6 million will finally be delivered, particularly as CDM suspends operations and the government struggles to explain how and when the outstanding compensation will be paid.

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