The American government declared on Thursday, June 25, that it had placed a Rwandan company and its head under sanction. They stand accused of reselling gold illegally 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 director, Jean Malic Kalima, have served as “a key partner to Rwandan government officials and M23 rebels, for whom they extracted and transported gold out of eastern DRC.”

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

The US ministry asserts that Rwandan soldiers and M23 combatants coordinated the secure transport of this gold to the Congolese city of Bukavu, situated on the border with Rwanda, and subsequently to Gasabo’s headquarters in the Rwandan capital, Kigali.

“In early 2026, 60 kg of gold, representing millions of dollars in value, were moved from eastern DRC to Gasabo in this manner,” the Treasury Department detailed in its statement.

“The United States will not allow outlaw groups to profit from illegal mineral trade to destabilize the region. The mineral wealth of the DRC rightfully belongs to the Congolese people,” affirmed Treasury Secretary Scott Bessent, quoted in the communiqué. This action underscores a commitment to robust African governance and combating illicit financial flows impacting continent news.

These US sanctions entail the freezing of all assets held directly or indirectly by the targeted individuals or entities within the United States. Furthermore, they prohibit American businesses and citizens from engaging in any commercial transactions with them, a restriction that also extends to foreign companies with US subsidiaries or those conducting transactions in US dollars.

The M23 derives substantial income from taxing mineral production and trade

Since its re-emergence in late 2021, the M23 anti-government group (short for “March 23 Movement”), allegedly backed by Kigali and the Rwandan army, has seized extensive territories in the eastern Democratic Republic of Congo. This area is rich in natural resources and has been plagued by conflicts for three decades.

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

In April 2024, the M23 captured the mining town of Rubaya, which accounts for 15% of global coltan production—a strategic mineral for the electronics industry. The armed group generates significant revenue by imposing a tax on the production and trade of these minerals. According to UN experts, approximately 120 tons of coltan were exported monthly to Rwanda between May and October 2024, reflecting a critical aspect of African current affairs.