US Intensifies Fight for Kenya’s Mrima Hill as China Quietly Withdraws

Withdrawals from Hunan Research Institute for Nonferrous Metals and Jinan Yuxiao Group come as Washington seeks to expand its access to critical mineral supply chains and Kenya pushes for more minerals to be processed locally.

Their departure leaves five groups that submitted tenders on October 21 for the project in Kwale County, approximately 65 kilometers southwest of Mombasa.

Mining Cabinet Secretary Hassan Ali Joho confirmed the withdrawals but said he did not know why the Chinese companies had pulled out, emphasizing that the government had not negotiated alternative arrangements with any of the bidders.

Speaking to the Reuters on October 30, Joho noted that the government expects to award the project within two to three weeks, adding that Kenya had faced no pressure from either the United States or China over the selection.

“Within the next two to three weeks we should be able to award Mrima Hills to the successful bidder,” Ali Joho said.

In March 2026, the government opened the competitive process, inviting expressions of interest from mining companies that can develop the niobium and rare earth deposits.

The Ministry of Mining, Blue Economy and Maritime Affairs published the tender notice in the Government’s MyGov publication of March 31, 2026.

According to the ministry, it issued invitations under sections 14(1) and 223(2)(e) of the Mining Act and the Mining (Award of Mineral Rights by Tender) Regulations, 2017.

The initial deadline for submitting expressions of interest was April 21, 2026, at 11 am.

More than 10 companies initially expressed interest, with reports putting the number at 13. The process subsequently narrowed as the government assessed the applicants’ qualifications.

By July, media reports said seven international groups had been shortlisted, and the number later fell to five groups submitting final tenders on October 21.

The government’s terms of reference set out technical, financial, environmental and community-related qualifications for companies seeking the project.

Applicants were required to demonstrate experience in the exploration and mining of specialised minerals, particularly niobium and rare earth elements, in different jurisdictions.

They also had to provide evidence of sufficient financial resources to undertake detailed exploration and mine development.

The ministry required experienced technical and management teams with records of executing comparable mining projects.

Other qualifications included corporate governance systems, experience in underground and surface rock engineering, and the ability to undertake projects in environmentally sensitive areas.

A central condition was the capacity to design, establish and operate an on-site mineral processing and beneficiation plant.

“The government will not issue licenses for geological resources without value addition. Factories will be established locally so that the final products are processed here, creating jobs and business opportunities for the people of Kwale,” Joho clarified.

Also Read: Kenya Puts Mrima Hill Rare Earths Up for Open Tender After US-China Scramble

Meridian Mineral Holdings is one of the US-linked groups competing for the project. It includes Fluor Corporation, an American engineering and construction company, and Tetra Tech, which provides engineering and technical services.

Fluor previously worked on Iluka’s Eneabba rare earths refinery in Western Australia, now part of the competing Australian consortium with RareX.

A representative of the RareX-Iluka partnership told Reuters that Fluor was not licensed to use intellectual property associated with the Eneabba plant.

The representative also warned that the Australian partnership could pursue legal action if Fluor used, or appeared to use, Iluka’s intellectual property in designing and constructing a processing facility for Mrima Hill.

Frontier Minerals LLC: US-linked group in the final five. It includes ReElement Technologies, an American company focused on rare earth separation and processing.

Mrima Earth: US-affiliated consortium led by Critical Metals Corp, which is also involved in the Tanbreez rare earth project in Greenland.

Critical Metals announced in July 2026 that it had been shortlisted for the Mrima Hill tender and would proceed to the next stage.

RareX and Iluka Resources – Australian partnership

The Australian consortium brings together RareX, an Australian-listed minerals exploration company, and Iluka Resources, a major Australian mineral sands and rare earths producer.

The two companies formed their partnership in 2025 to pursue the Mrima Hill opportunity, before the government opened the formal tender in March 2026.

RareX announced in July that the partnership had been shortlisted. It later confirmed that the consortium submitted its final proposal on October 21.

Gem of Dreams: A Kenyan-British joint venture among the five remaining contenders, which Joho confirmed was participating on October 30.

The current tender follows an earlier dispute involving Cortec Mining Kenya, which had sought to develop the Mrima Hill deposit.

Cortec had explored the site under a special prospecting license issued in 2008. The company later obtained Special Mining License No. 351 in March 2013, which it said gave it rights to develop the niobium and rare earth deposits.

However, the government revoked the license in August 2013 as part of a review of mining licenses issued during the transition period following the 2013 General Election.

Cortec challenged the decision, arguing that the cancellation was unlawful and violated its investment rights.

In June 2017, the Court of Appeal dismissed Cortec’s appeal and upheld the decision that the mining license was invalid because the required approvals had not been secured.

The investors subsequently pursued an international arbitration claim at the International Center for Settlement of Investment Disputes.

In 2018, the tribunal ruled that it lacked jurisdiction to hear the claims because the investment did not qualify for protection under the relevant investment treaty. The tribunal rejected an attempt to annul the award in 2021.

Also Read: African Nation Offers Trump Military Access and Minerals for US Partnership

A separate legal challenge emerged in June 2026 over a proposed Kenya-US arrangement the develop Mrima Hill.

The Center for Litigation Trust filed a petition at the High Court in Kwale on June 22, seeking to stop implementation of the proposed agreement until Parliament, the county government, and affected communities were involved.

Joho and the Attorney-General were named as respondents, with Kwale County Government, the Kenya Forest Service, and the National Museums of Kenya listed as interested parties.

Among the issues raised were the terms of the agreement, ownership structure, environmental impact assessments, benefit-sharing arrangements and the proposed location of processing facilities.

The petitioner also argued that Article 71 of the Constitution required parliamentary approval for the proposed arrangement following President William Ruto’s remarks at the G7 Summit in France, where he said Kenya and the United States were pursuing cooperation on critical minerals.

In September 2026, US Assistant Secretary of State for African Affairs Frank Garcia said Washington was ready to help Kenya develop a critical minerals processing industry.

However, in October 2026, Joho emphasized that Kenya would make its decision based on national interests and would not be directed by either Washington or Beijing.

“I do not think it is in the place of anybody to tell us how and who to work with. Our decisions are purely informed by the interest of this country,” CS Joho noted.

Faith Mwangi is a digital news writer at The Kenya Times with a strong foundation in multimedia journalism. She specializes in current affairs, education, and social justice reporting, with a keen focus on underreported stories affecting communities. Driven by a commitment to authentic storytelling and ethical journalism, she continues to grow in the dynamic digital media landscape. She can be reached at [email protected]

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