The American government confirmed on Thursday, June 25, its decision to sanction a Rwandan company and its chief executive. These entities are accused of reselling gold illicitly sourced from the neighboring Democratic Republic of Congo (DRC) to fund the anti-government armed group, M23.

According to the Treasury Department, Gasabo Gold Refinery and its leader, Jean Malic Kalima, functioned as a “key partner” for Rwandan government officials and M23 rebels, facilitating the extraction and transportation of gold out of eastern DRC.

“The United States will not allow outlaw groups to profit from illegal mineral trade…”

The U.S. ministry asserts that Rwandan soldiers, alongside M23 combatants, organized and secured the passage of gold to the Congolese city of Bukavu, situated on the border with Rwanda, and subsequently to Gasabo’s headquarters in Kigali, the Rwandan capital.

“In early 2026, approximately 60 kg of gold, valued at millions of dollars, was moved from eastern DRC to Gasabo through this clandestine network,” stated the Treasury Department in its official announcement.

“The United States will not tolerate outlaw groups profiting from the illegal trade of minerals to destabilize the region. The abundant mineral wealth of the DRC rightfully belongs to the Congolese people,” affirmed Treasury Secretary Scott Bessent, as quoted in the statement.

These American sanctions entail the freezing of all assets held, directly or indirectly, by the targeted individuals or companies within the United States. They also prohibit American businesses and citizens from engaging in commerce with these entities, a ban that extends to foreign companies with U.S. subsidiaries or those conducting transactions in U.S. dollars.

M23 generates substantial income through mineral taxation

Since its re-emergence in late 2021, the M23 anti-government group (short for “March 23 Movement”), with backing from Kigali and the Rwandan army, has seized control of extensive territories in the eastern Democratic Republic of Congo (DRC). This region is exceptionally rich in natural resources and has endured decades of conflict.

A report published by the NGO Global Witness in early June highlighted how hundreds of tons of coltan were plundered from eastern DRC by the armed group, subsequently laundered in Rwanda, and then exported to foundries that supply major electronics corporations.

In April 2024, the M23 group captured Rubaya, a vital mining town responsible for 15% of global coltan production—a strategic mineral crucial for the electronics industry. The armed group derives significant revenue from a tax levied on the production and trade of these minerals. According to UN experts, an estimated 120 tons of coltan were exported monthly to Rwanda between May and October 2024 via these channels.