Six firms are competing for mining rights, with Nairobi requiring the winner to process minerals locally
Kenya’s political opposition has pushed back against a government tender for a vast rare earth deposit sought by US and Chinese firms, saying it is proceeding without an economic viability study.
The competition for the Mrima Hill deposit comes as Washington seeks alternatives to Chinese-dominated mineral supply chains. Kenya opened bidding for the coastal site in March, inviting companies to seek rights to develop its rare earths and niobium, a metal used in aerospace manufacturing.
In a post on X on Sunday, opposition Wiper Patriotic Front spokesperson Ndegwa Njiru questioned the tender, saying the government has no “economic viability report or bankable feasibility study” for the $62 billion project.
The tender document acknowledges that no economic viability report has been prepared, but says the initial invitation for expressions of interest does not constitute a mining contract.
The government has not published an estimated cost for developing the mine and processing plant. The widely cited $62 billion figure comes from a 2013 estimate of minerals in the ground by former license holder Cortec Mining Kenya, which was majority-owned by Canada’s Pacific Wildcat Resources.
Kenya revoked Cortec’s license that year, saying it had been issued irregularly without the approvals required to mine in a protected forest. The company later lost an international arbitration case challenging the decision.
Kenyan Mining Minister Hassan Ali Joho told Semafor on Monday that six companies, including firms from the US, China, and Australia, are competing for the license in the latest bidding round. US-based Critical Metals Corp has said its Mrima Earth consortium was shortlisted. Earlier reporting also named US firm ReElement and China’s Jinan Yuxiao among the contenders.
Nairobi wants the successful bidder to process minerals in the East African nation as part of an effort to retain more of the value from the deposit instead of exporting raw materials. The government requires applicants to demonstrate that they can build an on-site processing plant. Joho also said talks with the US on building refineries and processing plants in Kenya are at a “very advanced” stage and “intertwined” with the Mrima Hill bidding.
Earlier this month, US Assistant Secretary of State for African Affairs Frank Garcia pledged support for Kenya’s mineral processing industry. During talks in New York last week, Kenyan President William Ruto and US Secretary of State Marco Rubio discussed opportunities for American firms in the African country’s critical minerals sector.
Washington has made a similar push in DR Congo, the world’s largest cobalt producer. In December, the US signed a minerals partnership with Kinshasa alongside a peace agreement it brokered between Congo and Rwanda.
Congolese lawyers and rights advocates have challenged the minerals deal in court, arguing that it bypassed parliament and threatens national control over natural resources.
China, however, still dominates rare earth supply chains. The International Energy Agency said in April that the country accounts for more than 90% of global refining of the rare earths used in permanent magnets.
