US Announces Sanctions on Entities Linked to Illegal Mining in DRC

The United States has imposed sanctions on an armed group and several companies tied to the illicit trade of conflict minerals in the Democratic Republic of Congo (DRC), targeting a major source of funding for violence and human rights abuses in the war-torn region.

On August 12, the Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against the militant group PARECO-FF and three companies, one based in the DRC and two in Hong Kong, that it says have profited from illegal mining operations in eastern Congo.

The move comes amid rising violence in the mineral-rich region, where thousands of civilians have been killed and over a million displaced.

The sanctions target operations in Rubaya, a mining zone where armed groups impose illegal taxes and labour practices to fund their activities.

PARECO-FF, a successor to the Coalition des Patriotes Résistants Congolais (PARECO), has been accused of overseeing forced labour, civilian executions, and smuggling operations since its emergence in 2022.

“The conflict minerals trade is exacting a deadly toll on Congolese civilians, fueling corruption, and preventing law-abiding businesses from investing in the DRC,” said John K. Hurley, Under Secretary of the Treasury for Terrorism and Financial Intelligence.

Companies Benefiting from Congo

According to OFAC, the Congolese mining firm Cooperative des Artisanaux Miniers du Congo (CDMC) facilitated the sale of minerals smuggled from PARECO-FF-controlled areas.

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CDMC allegedly shipped these minerals to two Hong Kong-based exporters: East Rise Corporation Limited and Star Dragon Corporation Limited.

The trade in conflict minerals, including tin, tantalum, tungsten, and gold, often supports armed groups by providing revenue from illegal exports, particularly through smuggling routes into Rwanda and onward to international markets like China.

OFAC said these entities have been sanctioned under Executive Order 13413, which targets individuals and organizations contributing to instability in the DRC.

US Sanctions

All US assets of the designated parties are now frozen, and Americans are barred from conducting transactions with them.

The move follows a June peace agreement between the DRC and Rwanda, in which the U.S. helped facilitate.

The administration stated the need for transparent and lawful mineral supply chains, both for regional stability and to protect the global supply of minerals essential to modern technology and national defense.

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The sanctioned companies and individuals could face significant financial penalties if they attempt to bypass the restrictions.

The U.S. also warned that foreign entities facilitating business with designated parties risk secondary sanctions.

While sanctions aim to disrupt the funding networks behind Congo’s armed conflicts, Treasury officials said their ultimate goal is to encourage changes in behavior and promote lawful trade.

The U.S. has expressed continued concern about human rights abuses in eastern Congo’s mining sector, including reports of child labor, sexual violence, and forced labor tied to armed group activity.

“Today’s actions are part of a broader U.S. commitment to a secure and lawful mineral trade in the DRC,” Hurley said. “We will continue to stand with those working toward peace, transparency, and investment in the region.”

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