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Congo says China's Huayou unit must pay compensation despite halt

Congo says China’s Huayou unit must pay compensation despite halt

Chinese-owned miner CDM must still pay US$6 million ($8.54 million) to Congolese communities hit by last year’s industrial wastewater spill even though it has suspended operations, the Democratic Republic of Congo’s mines ministry said on Friday.

Congo is the world’s largest cobalt producer and second-largest copper producer, and has tightened mining regulations in recent years to boost state revenues.

Congo Dongfang International Mining (CDM) is a unit of China’s Zhejiang Huayou Cobalt (SSE:603799), one of the world’s largest battery materials producers and a key supplier to the electric vehicle industry.

Congolese authorities suspended CDM for three months after wastewater leaked from a containment basin at its Lubumbashi operation in November 2025, contaminating nearby communities. The basin was designed for water retention but had been used to store acidic solutions.

Authorities subsequently ordered the company to pay US$2 million each to the three affected communities of Kasapa, Kamatete, and Kamisepe.

In a statement on Friday, the mines ministry said implementation of the compensation program had been delayed in part by financial difficulties cited by CDM, which recently announced a suspension of its activities.

“Financial difficulties or the suspension of operations do not exempt the operator from its obligations toward affected populations,” the ministry said.

Commitments made to local communities “must be honoured”, it added.

Huayou and CDM did not immediately respond to requests for comment.

The ministry said CDM was also required to pay a US$6.6 million penalty to the state treasury following the incident.

(Reporting by Fiston Mahamba; Writing by Maxwell Akalaare Adombila; Editing by Sanjeev Miglani)

Image: International Institute for Environment and Development | Flickr
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Written By Reuters