SNG: Scramble on for $62bln rare earths, niobium in Kenya’s Mrima Hill

By Zawya06:53 (UTC), 25 September 2026 Updated

By Staff Writer

Washington’s renewed interest in Kenya’s rare earths and niobium deposits is putting Mrima Hill in Kwale County at the centre of a global contest for critical minerals, even as questions over mining rights, local processing, conservation and community benefits remain unresolved.

The United States is stepping up engagement with Kenya as Washington seeks to diversify supply chains and reduce dependence on China, which dominates significant parts of the global rare-earth processing and refining industry.

At the heart of that engagement is Mrima Hill, a coastal mineral prospect containing niobium and rare earths worth $62.4 billion, which Nairobi hopes to commercialise through competitive tendering.

President William Ruto and US Secretary of State Marco Rubio met on Monday on the sidelines of the United Nations General Assembly (UNGA) in New York City, placing critical minerals and commercial ties among the issues discussed during their bilateral engagement at the Lotte New York Palace.“They spoke about how critical minerals opportunities in Kenya can position the country as a key player in the sector while presenting opportunities for US firms to provide value addition,” State Department spokesman Tommy Pigott said in a statement.

The talks came less than two weeks after senior US officials publicly pledged to help Kenya develop domestic processing capacity.

Frank Garcia, assistant secretary of state for African affairs, told an American Chamber of Commerce gathering in Nairobi on September 9 that Washington was ready to help Kenya build a mining industry capable of attracting legitimate business and strengthening global supply chains.“Critical minerals are a top priority for President Trump and Secretary Rubio. If we are serious about rare earth minerals, energy and a stronger America, we do it in partnership, not alone,” Mr Garcia said.

US-based Critical Metals Corp and Australia’s RareX are among companies that are eyeing the project.

Kenya has sought to deepen cooperation with Washington on critical minerals and develop processing capacity that could allow the country to retain more value from its mineral resources.

Washington has indicated that the proposed cooperation with Nairobi could extend beyond extraction to processing, worker training, technology transfer and the development of industries around the minerals.

The approach fits Nairobi’s ambition to move away from exporting raw materials and instead retain a larger share of the value generated from the country’s natural resources.

Government tender documents indicate that the Mrima Hill deposit contains 5.8 million tonnes grading 1.41 percent niobium oxide and 48.7 million tonnes grading 4.4 percent total rare earth oxides. The inferred resource is considerably larger, at 17.5 million tonnes of niobium material and 110.7 million tonnes of rare-earth material.

But inferred resources have a lower level of geological confidence than indicated resources. The government has cautioned that the figures do not constitute an economic viability assessment and that further work is required before the commercial potential of the deposit can be established.

Earlier estimates placed the potential value of Mrima Hill at about $62 billion, a figure that has helped make the deposit one of East Africa’s most closely watched undeveloped mineral prospects.

Rare earth elements are used in permanent magnets, electric motors, electronics, advanced manufacturing and defence technologies.

Niobium is mainly used to strengthen steel and is important in high-performance applications ranging from pipelines and transport infrastructure to aircraft and other specialised equipment.

The strategic importance of these minerals has grown as major industrial powers seek secure supplies for advanced manufacturing, clean-energy technologies and defence industries.

Washington’s challenge is particularly significant because China has established a dominant position in the processing and refining of many rare earths.

The United States is therefore seeking alternative sources and partnerships capable of reducing vulnerabilities in highly concentrated mineral supply chains.

Mrima Hill offers Kenya an opportunity to position itself within that emerging critical-minerals economy.

Kenya is a relatively small minerals producer compared with the Democratic Republic of Congo, Zambia, Zimbabwe and South Africa. But its infrastructure, access to the Port of Mombasa and proximity to regional markets could provide advantages if a commercially viable project is developed.

The Mrima deposit is not a new discovery. Kenya’s Mines and Geological Department identified the mineralisation in the 1930s, while exploration was undertaken in partnership with Anglo American in the 1950s.

The project has gone through several attempts at commercialisation. In 2013, Cortec Mining Kenya obtained a special mining licence for the project after receiving environmental approval. The licence was later revoked during a government review of mining licences issued during the transition between administrations.

The dispute subsequently moved into international arbitration, contributing to the long-running uncertainty surrounding the project.

The government is now seeking to restart the process under a competitive tender.

Mrima Hill is associated with the coastal forest ecosystem and is regarded as culturally important by local communities. Concerns over biodiversity, forests, cultural heritage and livelihoods are likely to become more significant if the project moves from exploration to commercial development.

Environmental and social assessments will therefore be critical in determining how mining can coexist with conservation and community interests.

The government’s emphasis on local value addition could also become a major test of how benefits are shared.

A large-scale project could require processing and refining facilities, transport infrastructure, specialised services and supporting industries. That could create opportunities for Kenyan engineers, geologists, technicians, transporters, manufacturers and other businesses.

But those benefits will depend on the eventual structure of the project, the investment commitments made by the developer and the extent to which processing actually takes place locally.

The contest around Mrima Hill is part of a much broader scramble for Africa’s critical minerals.

The Democratic Republic of Congo remains central to global cobalt and copper supply chains, while Zambia is a major copper producer. Zimbabwe, Namibia and Mali have attracted growing interest in lithium, while Mozambique, Madagascar and Tanzania have significant graphite resources.

Several African countries, including South Africa, Tanzania, Madagascar and Kenya, also have rare-earth potential.

The United States has increasingly sought commercial partnerships across the continent as it tries to diversify supplies and reduce exposure to concentrated mineral-processing networks.

China, meanwhile, remains deeply embedded in many African mineral supply chains.