An American-led consortium is moving closer to winning rights to one of the world's largest untapped rare earth deposits in Kenya, after two Chinese firms withdrew from the race. Mining Cabinet Secretary Hassan Ali Joho stated that five contenders submitted tenders on October 21 for the Mrima Hill deposit in coastal Kwale County. The bidders include two US consortia, one US-affiliated consortium, an Australian consortium, and a Kenyan-British joint venture.
The two Chinese companies that pulled out, Hunan Research Institute for Nonferrous Metals and Jinan Yuxiao Group Co. Ltd, withdrew without explanation. Joho mentioned that within the next two to three weeks, the government should be able to award Mrima Hills to the successful bidder. The site is estimated to hold minerals worth more than $62 billion, roughly half of Kenya's annual economic output.
The race for Mrima Hill is part of a larger competition between the US and China for access to Africa's mineral wealth. President Donald Trump's administration has been courting Kenya for a minerals deal, while China controls about 70% of the world's processing capacity for critical minerals. However, Joho insisted that Kenya faces no pressure from either Washington or Beijing, and that the government's decisions are purely informed by the country's interests.
Joho emphasized that the government had not negotiated alternative arrangements with any bidder and wants a transparent process. The tender was launched in March, and the government seeks a partner that will create jobs and develop processing capacity at home, rather than shipping raw ore abroad. Four other tenders for coltan, manganese, copper, and chromite projects were due on the same day as the Mrima Hill tender.
Despite the American bid advancing, Kenya expressed interest in Chinese money and expertise. Joho told a mining conference in Tianjin, China, in September that Nairobi is seeking deeper Chinese investment in its mining sector. He pitched Kenya's deposits of coltan, copper, lithium, niobium, and rare earths to investors, highlighting the country's efforts to strengthen governance, enhance transparency, and create a predictable investment environment.
The Mrima Hill deposit holds significant economic potential, with minerals believed to be worth enough to clear nearly 90% of Kenya's public debt of Sh13.47 trillion. The deposit contains niobium, used to strengthen steel for jet engines and oil pipelines, and rare earths such as neodymium and yttrium, which go into batteries and missile guidance systems. Preliminary indicators suggest the coastal deposit contains tens of billions of dollars' worth of rare earth minerals and niobium.
The scramble for Mrima Hill has been intense, with multiple consortia bidding for the site. An Australian consortium of RareX and Iluka Resources has announced a joint bid, while American consortiums include Meridian Mineral Holdings and Frontier Minerals LLC. A US-affiliated consortium called Mrima Earth is led by Critical Metals Corp. The site is not only a mining prospect but also a protected national forest and a sacred site for the Mijikenda and Digo communities.
Key points
- The US and China are competing for access to Africa's mineral wealth, with Kenya's Mrima Hill deposit being a significant prize.
- The Mrima Hill deposit is estimated to hold minerals worth over $62 billion, roughly half of Kenya's annual economic output.
- Kenya's government seeks a transparent process and a partner that will create jobs and develop processing capacity at home.
