Mrima Hill rare earth project attracts new US-backed consortium

Mrima Hills in Kwale County are believed to contain rare-earth minerals. [File, Standard]

A US-backed consortium has proposed a value chain approach in the extraction and development of rare-earth minerals at Kwale County's Mrima Hills.

The consortium, Mrima Earth Ltd, has already engaged the National Mining Corporation (Namico) in its prospect with the aim of offering a different approach in the sector.

The consortium, majority-owned by US shareholders and supported by a substantial Kenyan base, is financially backed by leading North American institutional investors as well as a major US strategic partner.

"Breaking from the trend of companies focused solely on raw ore export, the Mrima Earth Consortium plans to develop the resource in stages with a strong emphasis on creating a value-added product in Kenya," the firm says in its prospect to Namico.

It argues that this approach is expected to inject billions of US dollars into Kenya's economy, while positioning Mrima Hill as a potential anchor for a regional rare earth industry and a catalyst for downstream industrialisation.

A core element of the strategy, it says, is to work closely with the local community.

"Plans include extensive knowledge transfer, skills development, training programmes, and long-term job creation aimed at ensuring that the region-and Kenya as a whole-benefits directly from the project's growth," the firm says.

After years of inactivity, the renewed momentum around Mrima Hill suggests that the project may finally be moving toward realisation, offering Kenya an opportunity to take a leading role in the global rare earth supply chain.

"If successful, this model could serve as a blueprint for the sustainable development of other strategic mineral projects across Africa," the firm adds.

The consortium is led by a globally experienced management team, including a technical head who formerly served as managing director of Molycorp's Mountain Pass rare earth project in California - now operated by the New York Stock Exchange-listed MP Materials.

Other senior technical experts previously worked at Mountain Pass and bring extensive knowledge of rare earth and niobium development, along with years of experience across Africa.