The American government announced on Thursday, June 25, that it has sanctioned a Rwandan enterprise and its head. The accusation: reselling gold unlawfully sourced from the neighboring Democratic Republic of Congo (RDC) to finance the anti-government M23 armed group’s activities.

According to information released by the Treasury Department, Gasabo Gold Refinery and its chief, Jean Malic Kalima, have served as “a key partner for Rwandan government officials and M23 rebels, for whom they extracted and transported gold out of eastern RDC.”

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

The U.S. ministry asserts that Rwandan soldiers and M23 fighters collaborated to secure the transportation of this gold. The illicit cargo was moved to Bukavu, a Congolese city bordering Rwanda, and then onward to Gasabo’s headquarters in Kigali, the Rwandan capital.

“In early 2026, 60 kg of gold, valued at millions of dollars, was moved from eastern RDC to Gasabo using this method,” the Treasury Department detailed in its official statement.

“The United States will not permit outlaw groups to profit from the illegal trade of minerals to destabilize the region. The mineral wealth of the RDC rightfully belongs to the Congolese people,” affirmed Treasury Secretary Scott Bessent, as quoted in the communiqué.

These American 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 companies and citizens from engaging in transactions with them. The restrictions also extend to foreign companies with U.S. subsidiaries or those utilizing the U.S. dollar in their commercial exchanges.

M23 generates substantial revenue through mineral production and trade taxation

Since its resurgence in late 2021, the M23 anti-government group (short for “March 23 Movement”), reportedly backed by Kigali and the Rwandan army, has seized vast territories in the eastern Democratic Republic of Congo (RDC). This region is exceptionally rich in natural resources and has been plagued by conflicts for the past three decades.

An investigation conducted by the NGO Global Witness, published in early June, highlighted that hundreds of tons of coltan were plundered from eastern RDC by the armed group. This coltan was then allegedly laundered in Rwanda before being exported to foundries that supply major electronics corporations.

In April 2024, the M23 group captured the mining town of Rubaya, a site responsible for 15% of global coltan production—a strategic mineral crucial for the electronics industry. The armed group derives significant income by imposing a tax on mineral production and trade. According to UN experts, approximately 120 tons of coltan were exported monthly to Rwanda between May and October 2024 through these channels.