M23 Rebels’ Progress in Congo Fuels Surge in Illicit Mineral Trade

Summary:

• The M23 rebels, who Rwanda denies supporting, have long funded their operations, in part, through the illicit mineral trade. This funding escalated after M23 captured the coltan-rich Rubaya region in April, according to U.N. experts.

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GOMA: A swift advance by rebels in Congo’s mineral-rich eastern borderlands is poised to boost the M23 insurgency’s illegal mining profits, with analysts predicting an uptick in the illicit trade of minerals like coltan and gold through neighbouring Rwanda.

This week, the Rwanda-backed rebels took control of Goma, the largest city in eastern Democratic Republic of Congo, signaling a major shift in the conflict with government forces and raising concerns about a broader regional conflict.

The M23 rebels, who Rwanda denies supporting, have long funded their operations, in part, through the illicit mineral trade. This funding escalated after M23 captured the coltan-rich Rubaya region in April, according to U.N. experts. Congo is the world’s leading producer of tantalum and cobalt, key components in electric vehicle batteries and mobile phones and also holds significant deposits of coltan and gold.

“Mineral exports from Rwanda have now surpassed a billion dollars a year,” said Jason Stearns, a political scientist at Simon Fraser University and former U.N. investigator. “That’s about double what they were two years ago. And while the exact figures aren’t clear, a significant portion of that likely comes from the DRC.”

Rwanda’s ambassador-at-large for the Great Lakes region, Vincent Karega, rejected the notion that M23 was smuggling Congolese minerals. He did not directly address allegations of his government’s involvement in the illegal trade.

“Do you think it’s possible to fight and still have time to mine natural resources and refine them?” Karega said, adding that he had been sent to the border to manage the crisis.

The lack of transparency around mining operations is exacerbating the situation. Rebels recently seized Lumbishi, a key mining town in South Kivu province, and Numbi, an area rich in gold, tourmaline, and 3T minerals (tin, tantalum, and tungsten) used in mobile phones and computers, remains under threat.

“Lumbishi and its gold mines are likely to become significant sources of revenue for M23, particularly because gold is easier to monetize than coltan and tin,” said Gregory Mthembu-Salter, director of Phuzumoya Consulting.

He added that gold mined here would likely end up in Dubai via Rwanda, and possibly Kenya.

In 2023, the UAE declared imports of around $885 million in gold from Rwanda, a 75% increase from the previous five-year average, according to analysis of U.N. Comtrade data. However, Rwanda is not a significant gold producer.

In addition to controlling Rubaya, M23 has established a monopoly on coltan exports to Rwanda from the nearby Bibatama mine, one of the world’s largest coltan deposits. The group is said to have collected at least $800,000 a month in taxes from coltan production and trade, with Congolese and Rwandan coltan production often mixed, according to a December U.N. report.

Jean Pierre Okenda, a Congo-based human rights lawyer specializing in extractive industries, noted that Rwanda’s lack of membership in international transparency initiatives makes it difficult to trace its mineral supply chains.

“There is a lack of transparency in the mining operations, and a lack of access to geological data,” he said.