RareX and Iluka Resources have jointly applied for prospecting rights to Kenya’s Mrima Hill rare earth–niobium–phosphate–manganese project through the National Mining Corporation (NAMICO). The consortium proposes forming a special purpose vehicle (SPV), with RareX leading socio-environmental, resource definition, and engineering studies. Iluka seeks a 25% equity stake in the SPV for at least a 20% economic interest during the prospecting phase. This partnership aims to leverage Iluka’s Eneabba refinery in Western Australia for processing.
Iluka’s offtake will focus on rare earth and mineral sands products, allowing other metals like niobium, phosphate, and manganese to be sold separately, including within Kenyan markets. The agreement includes a binding offtake term sheet, potentially converted into a long-form agreement, offering Iluka a right-of-first-refusal basis on produced rare earths and mineral sands. RareX will fund all consortium costs until a mining license is granted, at which time Iluka can preserve its participation with a US$10 million payment.
RareX managing director James Durrant emphasized the plan to work with Iluka to process rare earths from Mrima Hill at Eneabba, simultaneously promoting local value chains for associated commodities. The Ministry of Mining, Blue Economy and Maritime Affairs in Kenya currently owns the project, and any development applications will require a joint venture with NAMICO. NAMICO has acknowledged receipt of the consortium’s application, signaling a potentially significant development in the critical minerals sector.
