Two Chinese Firms Exit Kenya’s Mrima Hill Mining Race Days After Gachagua’s Uproar, Details

Two Chinese companies have exited the race to secure the contract for developing Kenya’s Mrima Hill mineral deposits in Kwale County, reducing the number of competing investors to five as the government moves closer to selecting a preferred mining partner.

Mining Cabinet Secretary Hassan Joho confirmed the development on Friday, October 30, in an interview with Reuters. He explained that the government was approaching the final stage of the selection process and anticipated naming the successful bidder within the next two to three weeks.

The companies that withdrew are Hunan Research Institute for Nonferrous Metals and Jinan Yuxiao Group Co. Ltd. However, no official explanation has been provided regarding their decision to leave the competition.

Their departure leaves five groups that presented their proposals on October 21. The remaining applicants include three American-linked investment groups, an Australian consortium and a partnership involving Kenyan and British investors.

The American contenders comprise Meridian Mineral Holdings, which includes Fluor Corporation and Tetra Tech, Frontier Minerals LLC, featuring ReElement Technologies, and Critical Metals Corp, which heads the Mrima Earth group.

Australia’s RareX, in partnership with Iluka Resources, is also seeking the project, alongside Kenyan-British joint venture Gem of Dreams.

Joho further rejected claims that Kenya was facing pressure from either the United States or China over the mining deal. He maintained that the government would make its decision according to the country’s national interests.

Mrima Hill, located about 65 kilometres from Mombasa, is believed to hold significant quantities of rare earth elements and niobium. These minerals are important for producing electric vehicles, electronic equipment and aerospace technology.

Despite estimates placing the deposits’ potential value at tens of billions of dollars, their commercial viability has not yet been confirmed.

The competition is unfolding against increasing US-China rivalry over strategic minerals, as Washington seeks alternative supply chains to reduce its dependence on China. President William Ruto revealed in June that Kenya was close to reaching a critical minerals agreement with the United States, which has indicated interest in supporting local mineral processing.

https://www.kenyans.co.ke/news/129026-chinese-firms-withdraw-kenyas-critical-minerals-race-us-companies-intensify-bids

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