Australian mining companies RareX Limited and Iluka Resources have formed a strategic consortium to bid for the development of the Mrima Hill rare earths project in Kenya.
The partnership aims to unlock the potential of one of the world’s most significant rare earth and critical minerals deposits.
In a formal announcement at the RareX investor hub, the companies disclosed the submission of a proposal to Kenya’s National Mining Corporation (NAMICO) under the Mining Act (Chapter 306, Laws of Kenya).
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The proposal outlines the establishment of a special purpose vehicle (SPV) to facilitate the technical and financial derisking of the project ahead of full-scale development.
Located in Kwale County, less than 100 kilometers from Mombasa and just 15 kilometers from the Indian Ocean coastline, Mrima Hill boasts substantial deposits of rare earth elements, niobium, phosphate, and manganese.
RareX will take the lead in the SPV, focusing on community engagement, environmental protection, and conducting technical studies.
The company plans to draw from its experience at Cummins Range in Australia, a project with similar geological characteristics.
If the proposal is approved, Iluka Resources will secure a 25 percent stake in the SPV, with RareX holding at least a 20 percent economic interest during the prospecting phase until a Mining Licence is granted. RareX will finance all consortium expenses during this period.
The consortium agreement also features a binding conditional offtake term sheet, under which Iluka will acquire all rare earth and heavy mineral products from the project.
These minerals are intended to supply Iluka’s Eneabba refinery in Western Australia currently under construction with backing from a AU$1.65 billion non-recourse loan from the Australian federal government.
The proposal includes support from several technical and financial partners, notably Curtin University, which has signed an MoU with RareX to help transfer technical skills to Kenyans, ensuring local capacity building and long-term operational readiness.
The project, if approved by Kenya’s Cabinet Secretary for Mining, Blue Economy and Maritime Affairs, will be developed as a joint venture with NAMICO, further positioning Kenya as a key player in the global supply chain for critical minerals.
