RareX Limited and Iluka Resources Limited have formed a consortium to pursue the Mrima Hill rare earth-niobium-phosphate-manganese project in Kenya. The consortium has submitted a proposal to Kenya’s National Mining Corporation (NAMICO) to establish a joint venture for the project’s de-risking and development. Iluka will hold a 25% stake in a Special Purpose Vehicle (SPV), with RareX leading community engagement, environmental protection, and technical studies, leveraging experience from its Cummins Range project.
RareX and Iluka have a binding offtake term sheet where Iluka will have the right of first refusal for all rare earth and mineral sands products. Rare earths could potentially feed Iluka’s Eneabba refinery in Western Australia, which is supported by a AU$1.65 billion Australian federal government loan. The consortium’s proposal includes support from Curtin University for skills transfer to Kenyans. RareX is in discussions with GEM for potential working capital funding, but is exploring other options.
Mrima Hill is strategically located near Mombasa and geothermal power grids. RareX envisions processing rare earths at Eneabba, while building local value chains for manganese, phosphate, and niobium in Kenya. Securing a social license to operate is a priority, with plans to build local teams and engage experienced community development companies. Kenya’s emergence as a mining destination, supported by its renewable energy grid and status as a non-NATO U.S. ally, enhances the project’s attractiveness.
RareX emphasizes that the consortium’s application is preliminary and there are no guarantees of acceptance. Investors are cautioned against undue reliance on the grant of the Prospecting Licence, as it remains subject to NAMICO and the Cabinet Secretary’s discretion. RareX will continue to inform the market of the application’s progress in compliance with listing rules.
