US Backs Kenya Rare-Earth Processing Amid China Dominance

The United States is backing Kenya's initiative to develop the Mrima Hill rare-earth and niobium prospect in Kwale County, seeking to establish a non-Chinese source for strategic minerals. US Assistant Secretary of State for African Affairs Frank Garcia stated that Washington is prepared to support Nairobi's efforts to build a domestic critical-minerals sector. This move aligns with broader US goals to reduce reliance on Chinese imports, which accounted for 71% of US rare-earth compounds and metals between 2021 and 2024.

Garcia emphasized that critical minerals are a priority for the current administration, supporting Kenya's strategy to process minerals locally rather than exporting raw material. Six groups are currently under consideration for the project, including two US-based consortia. The US Geological Survey data highlights the urgency of this shift, noting China controlled over 70% of global rare-earth extraction and 87% of processing in 2024.

Mrima Hill Deposit Resource Estimates

A March government tender document outlines the scale of the Mrima Hill prospect. It lists indicated resources of 48.7 million tonnes grading 4.4% total rare-earth oxides. Additionally, the document identifies inferred resources of 110.7 million tonnes with a higher grade of 5.61%. The deposit also contains substantial niobium mineralization, adding to its strategic value.

While Reuters reported that the deposit could be worth tens of billions of dollars, Kenya's Mining Ministry has not yet completed an economic viability report for the site. This lack of finalized valuation remains a key factor in the ongoing evaluation of developers. The potential economic impact is significant, but the technical and financial assessment is still in progress.

Competing Consortia Advance in Tender

Critical Metals Corp. announced in July that its Mrima Earth Limited Consortium has advanced in Kenya's tender process. Australian RareX, in partnership with Iluka Resources, has also disclosed its progression to the request-for-proposal stage. These companies are among the six groups currently being evaluated by Kenyan authorities for the development rights.

No developer has been awarded the project as of the latest reports. The competition reflects the high stakes involved in securing a major source of rare earths outside of China. Both the US and Kenyan governments are monitoring the process closely to ensure the development aligns with strategic supply-chain goals.

Pending Critical Minerals Agreement

Despite the active tender process, a formal critical-minerals agreement between the US and Kenya has not been announced. President William Ruto stated in June that such a deal was approaching completion, but according to Reuters, it has not yet been finalized. This agreement is expected to facilitate the transfer of technology and investment necessary for domestic processing.

The delay in finalizing the agreement underscores the complexity of international mineral partnerships. However, the US backing for Kenya's domestic processing ambitions signals a strong commitment to diversifying supply chains. The outcome of the Mrima Hill tender will be a critical test of this new geopolitical alignment in the rare-earth market.