A new Global Witness investigation indicates that international commodities trader Traxys has bought conflict coltan smuggled from Democratic Republic of Congo (DRC) to Rwanda.
The investigation reveals that the multibillion-dollar company headquartered in Luxembourg bought 280 tonnes of coltan from Rwanda in 2024 based on customs documents seen by Global Witness.
Analysis of trade data and testimonies from two coltan smugglers suggest that a big share of the coltan Traxys bought from Rwanda is connected to the ongoing war in the east of DRC. Tantalum, a metal derived from coltan, is used in manufacturing electronics, such as mobile phones, personal computers and automotive parts including electric vehicles which are relevant for the energy transition. A mobile phone contains 40 milligrams of tantalum on average.
In February, Rwandan-backed armed group M23 has continued its warfare conquering Bukavu, a city of over one million – just weeks after occupying Goma, the largest city in Congo’s east. M23 is to a significant extent financed by exploiting coltan in the Rubaya area, which has been smuggled to Rwanda in large volumes. Traxys denies that any of the coltan it exports from Rwanda was mined in Rubaya.
The new investigation reveals:
- Traxys was the almost exclusive buyer of coltan sold by Rwandan minerals exporter African Panther Resources Limited, according to customs data seen by Global Witness.
- Two traders who illegally bring coltan from the DRC’s Rubaya area over the border to Rwanda, told Global Witness that African Panther has been buying smuggled coltan from Rubaya. One trader also said M23 demanded a tax of 15 per cent of the sales price.
- African Panther's coltan exports soared to unprecedented volumes in 2024, exceeding the combined total of the export volumes recorded over the previous four years. This increase in exports coincides with the escalation of the war in North Kivu and increased smuggling of conflict coltan from Rubaya, further suggesting that an important share of African Panther’s 2024 exports was smuggled from conflict zones in DRC.
- Traxys has ramped up buying coltan from Rwanda in 2023 and became one of the biggest buyers of coltan from Rwanda in 2024. At the end of 2023 it was already clear that conflict coltan from the Masisi area was regularly smuggled to Rwanda and laundered into supply chains, according to UN experts.
In response to the investigation, Traxys denied that its coltan originates from Rubaya and helps fund M23, citing a number of due diligence measures including mine visits, plausibility checks and the use of traceability systems. African Panther also denied smuggled coltan from Rubaya was in its supply chain. More details of Traxys and African Panther’s responses can be found here.
Coltan connected to conflict
M23 has profited from coltan mined in Rubaya from early 2024 by controlling a major transport route, and by taking full control of the area’s mines that produce around 15% of the world’s tantalum. According to UN experts the ore trade has provided M23 a revenue estimated at US$800,000 per month.
By the end of 2023, European Commission President von der Leyen discussed critical raw materials with Rwanda’s President Paul Kagame, leading to a strategic partnerships signed in February 2024. This partnership was supposed to allow the EU to better access raw materials from Rwanda, including tantalum, which the EU defines as a critical raw material. Yet this Global Witness investigation indicates that the EU has not developed sufficient safeguards to keep conflict minerals from entering its borders.
Alex Kopp, senior campaigner at Global Witness said:
“Our investigation strongly suggests that conflict coltan from DRC and smuggled to Rwanda has entered the EU. It seems that the EU has not been able to put effective safeguards in place and should immediately rescind its raw materials partnership with Rwanda.
“As major donors, the EU and its member states have considerable clout over Rwanda. The EU’s values and principles command it to freeze development assistance to Rwanda until Rwanda withdraws its troops from DRC and stops all support to M23.”
Key recommendations
- Rwanda must immediately withdraw its troops from DRC and cease all support to M23.
- The EU should freeze its official development assistance to Rwanda.
- The EU must rescind its strategic partnership on raw materials with Rwanda and any minerals-related strategic projects.
- The EU and other governments should consider further sanctions of commanders of M23 and senior Rwandan officials responsible for abuses as well as companies profiteering from conflict resources.