**Controversy Surrounds $62 Billion Rare Earth Tender in Kenya**
Kenya is facing significant political pushback regarding a government tender for the development of a vast rare earth deposit at Mrima Hill, which has drawn interest from both U.S. and Chinese firms. The opposition has raised concerns that the tender process is advancing without a comprehensive economic viability study, which they argue is essential for such a large-scale project.
The Mrima Hill deposit, located on the Kenyan coast, is considered a valuable resource for rare earth minerals and niobium, a metal critical for aerospace manufacturing. The Kenyan government opened the bidding process in March, inviting companies to submit proposals for the rights to develop the site. This move comes amid a broader effort by the United States to diversify its mineral supply chains, which are currently heavily influenced by China.
Ndegwa Njiru, a spokesperson for the opposition Wiper Patriotic Front, publicly questioned the government's approach in a post on social media platform X. He emphasized the lack of an economic viability report or a bankable feasibility study for the estimated $62 billion project. The tender document itself acknowledges that no such report has been prepared, although it clarifies that the initial invitation for expressions of interest does not equate to a mining contract.
The $62 billion figure cited in discussions stems from a 2013 estimate of the minerals present at the site, originally provided by Cortec Mining Kenya, which was predominantly owned by Canada’s Pacific Wildcat Resources. However, the Kenyan government revoked Cortec’s license the same year, citing irregularities in the issuance process, particularly concerning the necessary approvals to mine in a protected forest area. Following this, the company lost an international arbitration case challenging the revocation.
Kenyan Mining Minister Hassan Ali Joho confirmed that six companies are currently competing for the mining license, with participants from the U.S., China, and Australia among them. Notable contenders include the U.S.-based Critical Metals Corp, which has stated that its Mrima Earth consortium is on the shortlist. Other companies mentioned in the bidding process include U.S. firm ReElement and China’s Jinan Yuxiao.
In a strategic move, the Kenyan government is keen on ensuring that the successful bidder processes the minerals within the country. This approach aims to maximize the economic benefits derived from the deposit, rather than simply exporting raw materials. As part of the bidding requirements, applicants must demonstrate their capability to construct an on-site processing facility.
Minister Joho also indicated that discussions with U.S. officials regarding the establishment of refineries and processing plants in Kenya are progressing well and are closely linked to the Mrima Hill bidding process. This sentiment was echoed by U.S. Assistant Secretary of State for African Affairs Frank Garcia, who recently expressed support for the development of Kenya’s mineral processing industry.
The interest from U.S. firms aligns with broader American efforts to strengthen partnerships in Africa's critical minerals sector. During a recent meeting in New York, Kenyan President William Ruto and U.S. Secretary of State Marco Rubio explored opportunities for American companies to engage in Kenya’s mineral resources.
The situation in Kenya mirrors similar dynamics in the Democratic Republic of Congo (DRC), the world’s largest cobalt producer, where the U.S. has also sought to establish a minerals partnership. However, this initiative has faced legal challenges from Congolese lawyers and rights advocates who argue that it undermines national control over natural resources by bypassing parliamentary oversight.
Despite these emerging partnerships, China continues to dominate the global rare earth supply chain, accounting for over 90% of the world’s refining of rare earth elements, as reported by the International Energy Agency in April. This reality underscores the competitive landscape in which Kenya is attempting to position itself as a key player in the critical minerals market.
As the bidding process unfolds, the Kenyan government will need to address the opposition's concerns regarding economic viability and transparency to ensure a successful and sustainable development of the Mrima Hill rare earth deposit.