Washington tightens screws on M23 and Rwanda over illegal gold trade
The United States Treasury Department has imposed sanctions on Gasabo Gold Refinery and its director, Jean Malic Kalima, accusing them of involvement in the extraction, transport, and resale of gold illegally smuggled from eastern Democratic Republic of Congo.
American authorities allege that the refinery worked closely with Rwandan government officials and M23 rebels. According to Washington, Rwandan soldiers and M23 fighters secured the transport of gold to Bukavu before it was sent to Kigali for refining.
In early 2026, nearly 60 kilograms of gold worth millions of dollars were illicitly transferred to Rwanda, the Treasury stated.
These measures come amid mounting allegations of looting of Congolese natural resources and persistent violence in the country’s east.
Financial penalties imposed
The sanctions aim to prevent armed groups from profiting from illegal resource exploitation.
“The United States will not allow outlaw groups to profit from the illicit mineral trade to destabilize the region. The DRC’s mineral wealth rightfully belongs to the Congolese people,” said US Treasury Secretary Scott Bessent.
Specifically, the sanctions freeze all assets held in the US by the company and its director. They also prohibit any US company or citizen from conducting transactions with them. Foreign firms using the dollar or having US subsidiaries could also be affected.
Mineral trade at the heart of eastern DRC conflict
Since its resurgence in late 2021, the M23 has controlled vast territories in eastern DRC provinces rich in strategic minerals. Kinshasa, the United Nations, and several Western countries accuse Rwanda of providing military support to the armed group, an allegation Kigali continues to deny.
Resource exploitation is a key funding source for the rebel movement. In April 2024, the M23 seized Rubaya, one of the world’s largest coltan mining sites. This area supplies about 15% of global coltan production, a mineral essential for mobile phones, computers, and other electronics.
The armed group levies taxes on mineral extraction and trade, generating substantial revenue.
Fresh allegations of looting Congolese resources
The US sanctions come weeks after an investigation by the NGO Global Witness claimed that hundreds of tonnes of coltan illegally mined in eastern DRC were laundered through Rwanda before reaching smelters that supply major electronics manufacturers.
According to United Nations experts, approximately 120 tonnes of coltan were exported monthly to Rwanda between May and October 2024 from areas under M23 control.
These new sanctions demonstrate Washington’s intent to target not only armed groups but also the commercial networks that enable their financing. They also reignite debate over the traceability of strategic minerals and the responsibility of international actors in global supply chains.
