NAIROBI, Kenya, Apr 24 – RareX Limited has partnered with Iluka Resources to develop a rare earth and critical minerals prospect, the Mrima Hill Project in Kenya.
The companies have formed a consortium and formally submitted a proposal to Kenya’s National Mining Corporation (NAMICO) seeking approval to develop the Mrima Hill site jointly.
If approved, a Special Purpose Vehicle (SPV) will be established, with RareX leading de-risking activities and holding a 75 percent stake, while Iluka will maintain 25 percent ownership and long-term offtake rights.
Located in Kwale County, less than 100 kilometers from Mombasa and close to key infrastructure such as highways and geothermal power grids, Mrima Hill is known for its rich deposits of rare earths, niobium, phosphate, and manganese.
These minerals are vital for modern technologies and industries, from clean energy and electric vehicles to agriculture and steel production.
“This is a globally significant opportunity,” said RareX Managing Director James Durrant.
“Mrima Hill could become a linchpin in a new, secure supply chain for rare earths and critical minerals outside of traditional markets. We’re proud to be working with Iluka and are committed to a sustainable, community-first approach in Kenya.”
As part of the agreement, RareX will take the lead on community engagement, environmental protections, and technical assessments.
This includes leveraging expertise gained at the Cummins Range project in Western Australia.
The company also plans to establish local laboratories and pilot plants to ensure value addition and skills transfer to Kenyans.
In parallel, Iluka is eyeing the potential to process rare earths from Mrima Hill at its AU$1.65 billion Eneabba refinery in Western Australia.
The facility, currently under construction and backed by the Australian government, is a key piece of infrastructure in the global push for independent critical mineral supply chains.
Under the terms of the binding offtake agreement, Iluka has secured rights to all rare earth and mineral sands products from Mrima Hill on a first refusal basis.
The offtake agreement includes a performance bonus and ensures that other valuable outputs like phosphate, manganese, and niobium remain available for domestic development in Kenya.
The consortium has also secured preliminary support from potential technical and financial partners, including Curtin University, which will assist in local capacity building and technical education under a Memorandum of Understanding with RareX.
The proposal to NAMICO is currently under review, and the grant of a Prospecting License will be subject to further approvals by NAMICO and the Cabinet Secretary for Mining, Blue Economy, and Maritime Affairs.
RareX has also initiated discussions with Global Emerging Markets (GEM) regarding potential funding support for the project’s early phases, though terms remain under negotiation.
The project’s success would mark a major milestone in strengthening strategic ties between Australia and Kenya, two Commonwealth nations aligned on economic development and secure supply chains for critical minerals.
