The United States has offered to help Kenya build factories to process rare earth minerals and niobium from Mrima Hill in Kwale, opening a new front in the global scramble for critical minerals.
The proposed partnership would go beyond mining. Washington says American companies could help establish local processing plants, train Kenyan workers and transfer technology, allowing Kenya to capture more value from the minerals instead of exporting raw ore.
The Mrima Hill deposits have been estimated to be worth up to Sh8 trillion, although that figure represents the potential value of the mineral resource in the ground.
US Assistant Secretary of State for African Affairs Frank Garcia said American companies were interested in helping Kenya develop the minerals “right here on the ground”.
The proposal comes as Washington seeks reliable supplies of critical minerals outside China, which dominates much of the world’s rare-earth processing capacity.
For Kenya, the mine creates extraction and factories create an industry.
Local processing would bring jobs, technical skills, engineering and manufacturing opportunities while keeping a larger share of the mineral value chain in the country.
Mrima Hill contains significant deposits of niobium and rare earth elements, minerals used in advanced manufacturing, electronics, high-performance magnets, aerospace, defence and clean-energy technologies.
Kenya has already shortlisted international bidders for the project, including American-backed groups, as it moves towards selecting a developer. The US offer presents a potentially bigger prize for Kenya than simply selling minerals.
Will Mrima Hill will become another African mine feeding foreign factories, or the foundation of a Kenyan processing industry?