The U.S. Department of the Treasury has imposed sanctions on Gasabo Gold Refinery and its director, Jean Malic Kalima, for allegedly facilitating the extraction, transport, and resale of gold illegally mined in eastern Democratic Republic of the Congo (DRC).

Washington claims the company operated in close coordination with Rwandan government officials and M23 rebels. Rwandan soldiers and armed group fighters reportedly secured the transport of gold to Bukavu before its shipment to Kigali for refining.

According to U.S. authorities, nearly 60 kilograms of gold—worth several million dollars—were illicitly transferred to Rwanda in early 2026 alone.

These sanctions come amid growing accusations of systematic looting of Congolese natural resources and persistent violence in the country’s eastern regions.

Financial penalties target illegal mineral trade

Washington’s move aims to cut off funding streams for armed groups profiting from illegal mineral exploitation. “The United States will not allow outlaw groups to benefit from illegal mineral trade to destabilize the region. The DRC’s mineral wealth rightfully belongs to the Congolese people,” declared U.S. Treasury Secretary Scott Bessent.

The sanctions include freezing all U.S.-held assets of the company and its director, while prohibiting any American individuals or businesses from engaging in transactions with them. Foreign firms using the U.S. dollar or operating subsidiaries in the U.S. may also face consequences.

Mineral trade fuels conflict in eastern DRC

Since its resurgence in late 2021, the M23 has seized control of mineral-rich territories in eastern DRC. Kinshasa, the United Nations, and Western governments accuse Rwanda of providing military support to the armed group—a claim consistently denied by Kigali.

Illegal mining operations serve as a major revenue source for the M23. In April 2024, the group captured Rubaya, one of the world’s largest coltan mines, accounting for roughly 15% of global production. Coltan is essential for manufacturing smartphones, computers, and other electronics.

The rebels impose taxes on mineral extraction and trade, generating substantial income to sustain their operations.

Fresh allegations of resource plundering

The U.S. sanctions follow a recent investigation by an international watchdog group, which found that hundreds of tons of illegally mined coltan from eastern DRC were smuggled into Rwanda and later exported to refineries linked to major electronics manufacturers.

United Nations experts estimate that between May and October 2024, approximately 120 tons of coltan were shipped monthly from M23-controlled areas to Rwanda.

These measures underscore Washington’s determination to disrupt not only armed groups but also the commercial networks that fund their activities. They also reignite discussions on mineral traceability and the role of global supply chains in enabling resource exploitation.