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US backs Kenya in processing its own critical minerals

US backs Kenya in processing its own critical minerals locally

by Tommy Otobong
US backs Kenya in processing its own critical minerals

KEY POINTS


  • The US says it is ready to help Kenya build local processing for critical minerals, part of a push to diversify supply away from China.
  • Kenya’s Mrima Hill deposit holds rare earths and niobium potentially worth tens of billions of dollars, with President Ruto backing onshore processing.
  • Six firms are shortlisted for Mrima Hill, including US-based Critical Metals Corp and Australia’s RareX, as a US-Kenya minerals deal remains pending.

The United States says it is ready to help Kenya build an industry to process its critical minerals at home, spotlighting the country’s resources and its potential to add value before export.

The overture comes as major economies scramble to secure raw materials for industry and technology. Specifically, China dominates the global rare earth supply chain, and Washington wants to cut its dependence. Consequently, US officials are courting African producers such as Kenya as alternative suppliers.

Washington backs local processing

At an American Chamber of Commerce meeting in Kenya, US Assistant Secretary of State for Africa Frank Garcia said critical minerals rank among the Trump administration’s priorities. Moreover, he said Washington is ready to work with Kenya as it develops the sector, offering a model built on transparent investment, respect for communities and more secure supply chains.

According to the report, Kenyan President William Ruto welcomed the support, saying his government will promote responsible exploration of rare earths, titanium, graphite, lithium and niobium. Furthermore, Kenya wants processing to happen onshore, arguing that treating minerals locally can create jobs and expand its mining industry rather than simply exporting raw ore.

Mrima Hill draws rival bidders

The Mrima Hill deposit sits at the center of these plans. Specifically, the coastal site holds rare earths and niobium potentially worth tens of billions of dollars, with niobium used in aerospace and rare earths across technology and energy chains.

However, the development rights remain contested. According to Kenya’s mining principal secretary Harry Kimtai, six companies are on the shortlist, two of them American. Additionally, US-based Critical Metals Corp and Australia’s RareX said in July they had been shortlisted, while a US official said two American consortiums are competing. Ultimately, how Kenya structures the project, and how much processing stays onshore, will shape its role in global critical-mineral supply chains and a pending US-Kenya minerals deal.

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