Goma is a key location in the conflict-battered North Kivu province whose minerals are critical to much of the world’s technology.

Residents in eastern Congo’s largest city, Goma, were fleeing on Monday after Rwanda-backed rebels claimed to have captured the regional hub from Congolese forces as fighting escalated in recent days despite calls from the UN Security Council for the insurgents to withdraw.

M23 rebels in the Democratic Republic of Congo were reported to have taken the key eastern city of Goma in fierce fighting with government forces that sent streams of refugees fleeing area communities.

The M23 militia, funded and directed by Rwanda, said it had seized the city of Goma, terrifying its people, many of whom sought shelter there after fleeing the rebel advance.

Fighting has escalated sharply in recent weeks in eastern Congo, where rebels have seized key towns and are closing in on the city of Goma, the government’s last stronghold in the North Kivu province,

Residents of eastern Congo's largest city of Goma greeted the arrival of Rwanda-backed rebels with trepidation on Monday, some staying indoors and others coming out to cheer in what one called a "show" of happiness.

M23 rebels said they have advanced into Goma, a large city in the eastern Democratic Republic of Congo. Hundreds of thousands of residents have been displaced.

Heavy artillery fire could be heard in Goma on Monday, hours after Rwandan troops and fighters from the M23 rebel group entered the capital of North Kivu Province. The UN has warned of a looming crisis.

Katanty and Sonia Rolley GOMA, Democratic Republic of Congo (Reuters) -Rwandan-backed rebels marched into east Congo's largest city Goma on Monday and Congolese troops exchanged fire with the Rwandan military across the border,