The US Treasury Department has officially sanctioned Gasabo Gold Refinery and its director, Jean Malic Kalima. American authorities allege that these entities facilitated the illegal extraction, transportation, and resale of gold smuggled from the eastern Democratic Republic of Congo (DRC).

According to Washington, the company reportedly collaborated closely with Rwandan government officials and M23 rebels. Rwandan soldiers and M23 fighters are said to have secured the transport of gold to Bukavu before its onward journey to Kigali for refining.

The US government asserts that in early 2026, approximately 60 kilograms of gold, valued at several million dollars, were illicitly transferred to Rwanda through this network.

This punitive action comes amid escalating accusations of the plundering of Congolese natural resources and persistent violence plaguing the country’s eastern regions.

Financial repercussions

For Washington, these measures are designed to disrupt the ability of armed groups to profit from the illegal exploitation of natural resources.

“The United States will not tolerate outlaw groups profiting from illicit mineral trade to destabilize the region. The Democratic Republic of Congo’s mineral wealth rightfully belongs to the Congolese people,” stated US Treasury Secretary Scott Bessent.

In practical terms, the sanctions involve freezing all assets held in the United States by Gasabo Gold Refinery and its director. They also prohibit any US company or citizen from conducting transactions with them. Foreign companies utilizing the US dollar or possessing subsidiaries in the United States could also face similar restrictions.

Mineral trade fuels conflict in eastern DRC

Since its resurgence in late 2021, the M23 has seized control of vast territories in the eastern provinces of the DRC, areas rich in strategic minerals. Kinshasa, the United Nations, and several Western nations accuse Rwanda of providing military support to the armed group, an allegation Kigali consistently denies.

The exploitation of mineral resources serves as one of the primary funding streams for the rebel movement. In April 2024, the M23 notably captured Rubaya, one of the world’s most significant coltan extraction sites. This region accounts for approximately 15% of global coltan production, a vital mineral for manufacturing mobile phones, computers, and other electronic devices.

The armed group levies taxes on mineral exploitation and trade, thereby generating substantial revenues.

Renewed scrutiny on Congolese resource plundering

These US sanctions follow by weeks the release of an investigation by the NGO Global Witness. Their report asserted that hundreds of tons of coltan, illegally extracted from eastern DRC, were laundered in Rwanda before being exported to foundries that supply the supply chains of major electronics manufacturers.

According to United Nations experts, an estimated 120 tons of coltan were exported monthly to Rwanda between May and October 2024 from M23-controlled areas.

These latest sanctions underscore Washington’s determination to target not only armed groups but also the commercial networks enabling their financing. They also reignite discussions surrounding the traceability of strategic minerals and the accountability of international stakeholders within global supply chains.