Government to name winning bidder for Mrima Hills mining project this week

Mining Cabinet Secretary (CS) Hassan Joho. (Photo: Joho/X)

Mining Cabinet Secretary (CS) Hassan Joho says the government will name the winning bidder for the proposed Mrima Hills mining project in Kwale County this week, following the evaluation of financial proposals submitted by interested companies.

Joho said the technical and financial bids had been opened and the evaluation process was underway, with a recommendation expected to reach his desk before the final decision is announced.

“Within this week, a recommendation will be brought to my desk indicating which company will deliver the greatest value to the people of Kwale, the people of this constituency and the people of Kenya. Then we shall award the tender,” he said.

He dismissed claims that the project had already been awarded to a particular investor, saying companies from the United States and Australia had participated in the competitive bidding process.

“Has it been awarded? It will be awarded soon,” Joho said, accusing politicians of politicising the project and misleading residents over its ownership and potential benefits.

The CS said the government had opted for competitive tendering instead of directly awarding mining rights to ensure the country and affected communities received the greatest possible returns from the mineral deposits.

Under the process, bidders were required to outline their investment plans, proposed local industries, employment opportunities and the amount they would pay as a signature bonus upon being granted the mining licence.

Joho said the government would return to the affected communities once the preferred bidder had been identified to explain the selection criteria before introducing the investor to residents for further engagement.

He said the successful investor would also be required to enter into a Community Development Agreement, as provided for under the Mining Act, with representatives of the affected communities involved in determining how the project would benefit residents.

The CS further said employment opportunities would first be reserved for qualified residents of Kwale, while factories and industries linked to the mining operations should be established in the area.

His announcement comes amid political disagreements over the proposed extraction of minerals at Mrima Hills, with some leaders questioning the project’s impact on local communities and the environment.

Defending the planned mining operations, Joho challenged those opposing extraction to explain how leaving the minerals underground would benefit residents.

“These minerals have been underground. If they are not extracted, how have they helped you?” he asked.

He also rejected concerns that mining would leave the area environmentally degraded, citing the rehabilitation work undertaken by Base Titanium after its operations in Kwale.

The CS said the former mining company had rehabilitated the land, planted trees and left behind a water dam and electricity infrastructure. He also cited the employment previously provided to about 1,600 local young people.

However, he acknowledged that the actual quantities and commercial value of the Mrima Hills deposits were yet to be established, as existing estimates were based on historical data.

“The actual value could be what we have estimated; it could be higher than that, or it could be lower,” he said.

The successful bidder is expected to undertake fresh prospecting, including drilling and measurements, to establish the actual mineral deposits before the scale and commercial viability of the project can be determined.

Mrima Hills, located in Kwale County, is known for deposits of niobium and rare earth elements, minerals used in various industrial and technological applications. The proposed project has attracted interest from international investors because of its potential mineral wealth.

However, questions surrounding community participation, local employment, environmental protection and the sharing of benefits have remained central to the debate over the proposed extraction.