Congo's M23 Rebels Threaten Country's Tin Mining

A new rebellion in the Democratic Republic of Congo is threatening the country's tin mining industry.

The rebels, calling themselves M23, have been battling Congolese forces in the east of the country, coming within 30 miles of the regional capitol Goma.

"The DRC's tin mining sector in the Kivus is located at the heart of M23 insurgency; thus, there are clear risks to the regional trade flows in minerals," Barclays analysts said.

In a note, the British bank added that tin mining in the DRC was already on a downward trend owing to international concerns over purchasing so-called "conflict minerals."

According to Barclays, fighting in Washington over the conflict minerals element of the Dodd-Frank financial law could prove "costly and long winded" discouraging Western companies from purchasing Central African tin.

The DRC has accused neighboring Rwanda of supporting the rebels, leading to an escalation of tensions in the region, which regional leaders are hoping to diffuse.

On Wednesday, leaders from 11 nations in the East Africa region, including the DRC and Rwanda, met in the capital, Kampala, to discuss the formation of a neutral force, as well as to set up an international committee of defense ministers to seek a solution to the escalating conflict in the eastern DRC.

More than 250,000 people have been displaced by the conflict, as rebel leader Gen. Bosco Ntaganda of the M23 movement -- wanted by the International Criminal court on charges of conscripting child soldiers -- has entrenched himself and his troops in the mineral-rich region, leading to speculation that the Rwandan government hopes to gain a stake in its resources by supporting the rebels.