The United States has imposed sanctions on Rwanda's Gasabo Gold Refinery, accusing it of smuggling minerals from rebel-controlled areas in the Democratic Republic of Congo (DRC). The measures, announced on June 25, also target the refinery's chairman, Jean Malic Kalima, and general manager, Bosco Kayobotsi.
Allegations of Smuggling and M23 Links
According to the BBC, Washington claims the refinery is part of a 'network' working with the M23 rebel group, which controls parts of eastern DRC rich in gold and coltan, a mineral essential for electronics. The US Treasury alleges that at least 60kg of gold, worth millions of dollars, were smuggled from eastern DRC to Gasabo Gold in early 2026. The statement further alleges that Rwandan government officials and soldiers oversaw the system.
Treasury Secretary Scott Bessent said: 'The United States will not allow rogue groups to profit from the illicit mineral trade and destabilise the region. The Democratic Republic of the Congo's mineral wealth rightfully belongs to the Congolese people.'
Previous EU Sanctions
This is not the first time Gasabo Gold Refinery has faced international action. In 2025, the European Union sanctioned the company for 'exploiting the armed conflict' in DRC. On June 25, the US also sanctioned three mining firms controlled by Kalima — Bugambira Mines, Wolfram Mining and Processing, and Rwinkwavu Mining Corporation.
Rwanda's Response and Denials
Rwanda has long denied supporting the M23 rebel group, despite evidence presented by UN experts. The government has not yet responded to the latest sanctions but has previously described similar measures as unfair and one-sided. The sanctions mean any assets under US jurisdiction belonging to the refinery or its executives will be frozen. American citizens and companies are barred from conducting business with them. The sanctioned parties have not responded to requests for comment.
Peace Deal and Ongoing Conflict
The move builds on a peace deal signed in December 2025 between the presidents of Rwanda and DRC, brokered by the US. The agreement aims to end the long-running conflict in eastern DRC and establish a transparent minerals sector. Analysts believe it could also encourage US investment in the region's mineral wealth. However, fighting has continued despite the deal. At a summit on Wednesday, officials from DRC, Rwanda and the US expressed 'serious concern over the escalating fighting' in eastern Congo.
Broader Implications
The sanctions highlight ongoing instability in the Great Lakes region and the role of illicit mineral trade in fueling conflict. The US action is part of broader efforts to curb smuggling and hold accountable those profiting from violence. The situation remains fluid, with international pressure on Rwanda to sever ties with the M23.
