The U.S. Treasury Department announced Thursday it had blacklisted a Rwanda-based gold refinery and its owner for their alleged role in processing and selling gold smuggled from neighboring DRC, which reportedly financed M23 rebels.

According to U.S. officials, Gasabo Gold Refinery and its director, Jean Malic Kalima, served as a critical link between Rwandan government officials and M23 rebels, facilitating the extraction and transportation of gold from eastern DRC to Rwanda. Investigators allege that Rwandan soldiers and M23 fighters secured gold shipments from mining sites in DRC to Bukavu, a Congolese border city, before routing them to Kigali for processing.

U.S. vows to disrupt illicit mineral trade financing armed groups

“Washington will not tolerate illegal mineral trafficking that fuels instability,” a Treasury spokesperson stated, emphasizing that Congo’s mineral wealth “rightfully belongs to the Congolese people.”

The sanctions freeze all assets held by the targeted individuals and entities within U.S. jurisdiction and prohibit American citizens, businesses, and foreign firms using the dollar from engaging in transactions with them.

M23 rebels profit from DRC’s mineral wealth

The M23, a rebel group active in eastern DRC since late 2021, has seized control of key mining areas with alleged support from Rwanda. Reports indicate the group imposes taxes on mineral production and trade, generating substantial revenue. Investigations reveal that between May and October 2024 alone, approximately 120 tons of coltan—vital for electronics—were smuggled monthly into Rwanda from M23-controlled zones like Rubaya, a major coltan hub supplying 15% of global output.

Global observers warn that this illicit trade not only funds armed conflict but also deprives DRC of critical revenue, exacerbating regional instability.