Mrima Hill’s Riches Fuel Global Scramble, US Entry Raises Hopes, Fears

By Benadeta Mwaura - Reporter

Kenya, January 06 2026 - A new chapter in the long-running story of Mrima Hill’s mineral wealth has begun, with the entry of a US-backed consortium into the race to develop the site’s rare earth and associated mineral deposits. The move has revived old debates over sovereignty, community rights, environmental protection and Kenya’s place in a global scramble for critical minerals, decades after the project was first flagged as a potential economic game-changer.

Located in Kwale County’s forested Mrima Hills, the deposit is believed to hold a mix of rare earth elements, niobium, phosphate and manganese, minerals critical to technologies ranging from electric vehicles and clean energy to aerospace and defence manufacturing.

Earlier estimates put the value of these sub-surface resources at tens of billions of dollars, making it one of Kenya’s most significant undeveloped mineral prospects. A History of Promise and Pause Interest in Mrima Hill is nothing new. In the early 2010s, an exploration licence granted to Cortec Mining Kenya sparked excitement and controversy, only to be revoked amid corruption allegations and legal battles that wound their way through domestic and international courts.

That episode stalled development for years.

Now, after a period of inactivity, the Mrima Earth Consortium, a group majority-owned by US investors, backed by North American institutional partners and supported by specialised technical expertise, has submitted a value-chain-oriented proposal to Kenya’s National Mining Corporation (Namico).

Unlike earlier models that focused on exporting raw ore, the consortium says it intends to create value-added products in Kenya, positioning Mrima Hill as a hub not just for extraction but for processing and industrialisation.

“This is not simply mining, it’s transforming an entire resource ecosystem, from extraction to finished product, right here in Kenya,” said an industry source familiar with the consortium’s pitch, speaking on condition of anonymity. Experts argue such an approach could dramatically increase the economic benefits accruing to Kenya, as downstream processing typically captures far more value than raw exports.

Geopolitical Stakes and Global Rivalry

Mrima Hill’s revival comes at a moment when critical minerals have become strategic assets in global power dynamics. Traditionally, China has dominated the supply of rare earth elements, a group of metals essential for high-tech applications, and has instituted export controls that have squeezed non- Chinese supply.

That has spurred interest from Western firms and governments in diversifying supply chains. Australia has also jumped into the fray. A separate consortium between RareX Limited and Iluka Resources is bidding for rights to develop the Mrima Hill project with plans that could include mineral processing at Iluka’s emerging refinery in Western Australia, backed in part by significant government loans.

If successful, such a deal would integrate Mrima Hill into a broader Indo-Pacific critical minerals network aimed at reducing dependence on Chinese supply. For the United States, involvement in projects like Mrima Hill aligns with broader foreign policy strategies to secure access to strategic resources and build supply chain resilience among allies.

Culture, Environment and Community Rights

Despite the economic potential, the entry of foreign investors has rekindled local concerns in Kwale County. The Mrima Hills are ecologically sensitive and culturally significant, particularly to the Digo community, whose traditional customs include taboos around cutting certain trees and deep ties to the forest environment.

Community leaders and activists have voiced fears about environmental degradation, land loss and marginalisation, arguing that past development initiatives failed to ensure local benefits or protect livelihood landscapes.

In informal community discussions, some forest guards have resisted the arrival of outsiders, underscoring a broader mistrust rooted in historical grievances. Environmental experts also stress the need for a rigorous Environmental and Social Impact Assessment (ESIA) in keeping with Kenya’s Constitution, particularly Articles 42 and 69, which enshrine environmental rights, to ensure that any extraction activities mitigate harm to biodiversity, water resources and human health.

Economic Promise vs. Social Cost

Proponents of development argue that, if responsibly managed, Mrima Hill could become a cornerstone of Kenya’s mining sector, creating jobs, fostering skills transfer and anchoring industrialisation in a value-added minerals economy. They also point to the urgent global demand for rare earths in renewable energy and digital technologies as a timely opportunity for Kenya to assert itself in a strategic market.

Critics, however, emphasise the need for transparency, equitable benefit-sharing and community representation in every stage of the project, from licensing and environmental review to revenue allocation and local employment. They warn that without these safeguards, the project could mirror patterns seen in other African countries, where resource wealth has too often failed to translate into broad-based economic development.

Kenyan authorities, including the Ministry of Mining, Blue Economy and Maritime Affairs, have signalled openness to responsible investment while emphasising the need to protect community interests and maximise value for the national economy.

Formal approval of prospecting licences and joint ventures will require careful negotiation with Namico, private investors and county leadership, as well as alignment with national mining regulations and environmental law. As global interest in critical minerals intensifies, Mrima Hill stands at the crossroads of big economic promise and deep social complexity, a test case for how Kenya harnesses its natural wealth in a way that balances global demand with domestic priorities.