US Targets Armed Group and Hong Kong Firms Over Congo Conflict Minerals
The United States has imposed sanctions on an armed group and two Hong Kong-based companies accused of involvement in violence and illegal mining in the Democratic Republic of Congo (DRC).
Officials say the move is part of a broader effort to disrupt the flow of “conflict minerals” from the region.
The Treasury Department’s Office of Foreign Assets Control (OFAC) announced penalties against PARECO-FF, a successor to an armed group with a history of “destabilizing activities” in the DRC.
According to the Treasury, PARECO-FF has been responsible for forced labor and civilian executions in mining zones under its control.
Also sanctioned were Hong Kong-based East Rise Corporation Ltd. and Star Dragon Corporation Ltd., which the US says purchased minerals illicitly sourced from these conflict areas.
Congolese mining cooperative Cooperative des Artisanaux Miniers du Congo (CDMC) was also penalized for allegedly selling materials “sourced and smuggled from PARECO-FF-controlled areas” to the two foreign firms.
In a statement, CDMC “categorically rejected” the allegations, asserting no ties to armed groups or mineral smuggling. East Rise and Star Dragon did not respond to requests for comment.
The sanctions focus on Rubaya, a major mining hub in eastern Congo that contains one of the world’s largest tantalum ore deposits—critical for electronics manufacturing.
While CDMC holds the legal concession for Rubaya, the cooperative says it halted purchases in 2023 due to regional insecurity, calling itself “a primary victim, not a perpetrator.”
The announcement comes just weeks after Congo and Rwanda signed a US-brokered peace deal in Washington aimed at ending years of deadly conflict and stabilizing eastern Congo.
The agreement seeks to halt the occupation of mineral-rich territories by the Rwanda-backed M23 rebel group.
Beyond the sanctions, Washington and Kinshasa are pursuing a separate partnership to attract US investment in Congo’s reserves of copper, cobalt, lithium, and other strategic minerals.
Congo and Rwanda together accounted for nearly 60% of global tantalum production in 2024, according to the US Geological Survey.
The Treasury says the targeted violations occurred before April 2024, when M23 took control of Rubaya.
At the time, PARECO-FF was reportedly running mining operations, collecting illegal fees from miners, and smuggling minerals.
The UN reports that M23 now profits from the same trade, earning at least $800,000 a month through illicit taxation and contributing to what experts call the “largest contamination of mineral supply chains” in the region’s history.
The US has sanctioned M23 since 2013 and recently targeted several of its leaders, as well as Rwandan officials accused of providing support—claims Kigali denies.
CDMC’s president, Serge Mulumba, has accused certain Congolese officials of using “opaque diplomatic and financial channels” to undermine the cooperative’s mining rights in Rubaya.
“Treasury will not hesitate to act against those who block the US and its allies from accessing the critical minerals essential to our national defense,” said John K. Hurley, Under Secretary for Terrorism and Financial Intelligence.
About the Author
