US-led peace talks could boost Rwandan processing of DRC minerals, sources say

Minerals such as tungsten, tantalum and tin, which the Democratic Republic of the Congo (DRC) has long accused neighbouring Rwanda of illegally exploiting, could be exported legitimately to Rwanda for processing under the terms of a peace deal being negotiated by the US, three sources told Reuters.

Kinshasa views the plundering of its mineral wealth as a key driver of the conflict between its forces and Rwanda-backed M23 rebels in eastern DRC that has intensified since January, accusing Kigali of smuggling tens of millions of dollars worth of minerals over the border each month to be sold from Rwanda.

Washington is pushing for a peace agreement between the two sides to be signed this summer, accompanied by minerals deals aimed at bringing billions of dollars of Western investment to the region, Massad Boulos, US President Donald Trump's senior adviser for Africa, told Reuters earlier this month.

He said on X last week the US had provided the first draft of a deal to both sides, though its contents have not been disclosed.

Two diplomatic sources and one UN source briefed by US officials told Reuters the negotiations could lead to minerals from what are now artisanal mining zones in eastern DRC being refined and marketed from Rwanda.

“Their [Washington's] point of view is simple: If Rwanda can legitimately benefit from the DRC's minerals through processing it will be less tempted to occupy its neighbour and plunder its minerals,” one of the diplomats said.

“For the DRC, industrialisation would increase its revenues, improve traceability and combat the armed groups that live off the miners.”

A government spokesperson for the DRC, which has long said it wants to move away from raw exports towards local processing, referred questions to the foreign ministry, which did not respond.

A DRC official, speaking on condition of anonymity, said no co-operation on minerals could happen without the withdrawal of Rwandan troops and “their proxies”, a reference to M23, which controls more territory than ever in eastern DRC. The official said Rwanda would also need to respect “our sovereignty over everything, including our minerals”.

For Rwanda, the negotiations could bring a huge inflow of cash that could help it clean up what has until now been a largely illicit sector of its economy. The US, for its part, would be able to secure for itself and its allies deeper access to DRC mineral assets dominated by China. A US state department spokesperson said in a declaration signed in Washington last month, the DRC and Rwanda had committed to creating “transparent, formalised and licit end-to-end mineral value chains [from mine to processed metal] that link both countries in partnership with the US government and US investors.”

Details of the scale of investments and who would be making them are as yet unclear, but Boulos told Reuters last week US officials had engaged with “probably up to 30" US investors about “doing business in Rwanda in the mining space”, including downstream processing activities.

He said separately the US International Development Finance Corporation — a body tasked with mobilising private capital to further US foreign policy and national security goals, offering support such as debt financing — would “provide full support on these transactions and investments”.

The region's long history of violence underscores the risk that any companies taking the leap could be exposed to losses.

The minerals projects alone won't halt a conflict that stretches back to the 1994 Rwandan genocide, the sources said.

“A mining agreement cannot bring peace. These projects will take three, five or 10 years,” another diplomat said. “There are immediate problems and root causes that need to be addressed.”

The DRC, the UN and the US have repeatedly accused Rwanda of profiting from the illegal exploitation of DRC mineral resources, allegations Kigali denies.

A previous attempt to foster deeper official mining co-operation between Rwanda and the DRC four years ago failed.

In June 2021, the two sides signed deals including a memorandum on the joint exploitation and commercialisation of DRC gold between state-owned Sakima and private Rwandan firm Dither.

But Kinshasa suspended the deal in June 2022, citing Rwanda's alleged military support for M23 and the rebel group's capture of the strategic border town of Bunagana.

Rwanda has denied backing M23 but acknowledges deploying “defensive measures” in eastern DRC against Rwandan Hutu militias. Analysts say the most commonly cited group, the Democratic Forces for the Liberation of Rwanda, no longer poses much of a threat.

One diplomatic source said from Kigali's point of view, Kinshasa is not a reliable negotiating partner. “The collapse of the Sakima deal bothered them,” they said of Rwandan officials.

“Neither country trusts the other,” said William Millman, an independent consultant on the tantalum-niobium industry who has visited mines in both countries.

“So unless you've got somebody with a big club, such as the US, they're not going to honour agreements.”

Reuters