U.S. Sanctions PARECO, CDMC for Congo Mineral Trade

August 13, 2025

2 minutes read

US Sanctions

On August 12, 2025, the U.S. announced sanctions against PARECO-FF, an armed group in eastern Democratic Republic of Congo (DRC).

The sanctions also target CDMC, a Congolese mining company, and two Hong Kong exporters, East Rise and Star Dragon.

These measures aim to stop illegal mineral trading and secure U.S. access to critical minerals like coltan.

PARECO’s Grip on Rubaya Mines

From 2022 to early 2024, PARECO-FF controlled Rubaya, a major coltan mining site.

A U.S. official stated that PARECO-FF profited by charging illegal fees, smuggling minerals, and forcing labor. The group also executed civilians in mining areas, worsening the region’s humanitarian crisis.

Sanctions Hit CDMC and Exporters

The U.S. Treasury’s OFAC sanctioned CDMC for selling smuggled Rubaya minerals.

Similarly, East Rise and Star Dragon faced sanctions for buying these conflict minerals, often smuggled via Rwanda.

Consequently, their U.S. assets are frozen, and transactions with U.S. persons are banned.

Conflict and Peace in Eastern Congo

Currently, the M23 rebel group, also under U.S. sanctions, controls Rubaya. Eastern DRC’s mineral wealth fuels decades-long violence, including by Rwanda-backed M23.

In June 2025, a U.S.-brokered Congo-Rwanda peace deal aimed to ease tensions and boost U.S. mineral access. However, recent clashes between Congo and M23 threaten a planned August 18 peace agreement.

Why U.S. Sanctions Matter

The U.S. seeks to disrupt illegal mineral trade and promote lawful investment in Congo’s resources, like tantalum and cobalt.

By targeting “spoilers,” these sanctions support peace talks in Doha and Washington, as noted by expert Jason Stearns.

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