Kenya is preparing to award development rights to the Mrima Hill mineral deposit, a resource estimated to contain tens of billions of dollars in rare earth minerals and niobium, after two Chinese companies withdrew from the competition. Five international groups remain in contention, including three with US links.

The decision, expected within two to three weeks of October 30, could determine which investor gains access to one of East Africa’s most closely watched critical minerals prospects.

The deposit is located in Kwale County, approximately 65 kilometres from the coastal city of Mombasa.

The contest also puts Kenya at the centre of growing international interest in minerals needed for electric vehicles, electronics, aerospace manufacturing and other advanced industries.

For Nairobi, the challenge will be selecting a developer capable of turning the resource potential into an economically viable mining and processing operation.

Five groups compete for development rights

The remaining bidders comprise Meridian Mineral Holdings, Frontier Minerals LLC, Mrima Earth, Australia’s RareX in partnership with Iluka Resources, and Gem of Dreams, a Kenyan-British joint venture.

Meridian brings together US engineering company Fluor Corporation and consulting firm Tetra Tech, while Frontier Minerals includes ReElement Technologies, which specialises in rare earth processing and separation.

Mrima Earth is led by Critical Metals Corp, a company also pursuing the Tanbreez rare earth project in Greenland.

Australia’s RareX and Iluka Resources are competing against the US-linked groups, creating an unusual contest involving two companies with an existing commercial connection. Fluor previously built Iluka’s Eneabba rare earth refinery in Western Australia.

However, an Iluka representative says that Fluor was not licensed to use the Australian company’s intellectual property and warned of possible legal action if it used or appeared to use that technology in a Mrima Hill processing plant.

The Kenyan-British venture Gem of Dreams completes the five-group field. All five submitted proposals on October 21, according to Mining Cabinet Secretary Hassan Ali Joho.

Chinese withdrawals and Kenya’s mineral ambitions

The two companies that exited the tender are Hunan Research Institute for Nonferrous Metals and Jinan Yuxiao Group Co. Ltd. Joho said he did not know why they withdrew, although he confirmed that one of the companies had submitted a proposal for another Kenyan mining project.

Their departure does not mean Chinese investors have abandoned Kenya’s mining sector.

The companies had also pursued other state mining opportunities involving minerals including coltan, manganese, copper and chromite.

Joho has maintained that the government is not under pressure from either Washington or Beijing and will select a developer based on Kenya’s national interests.

The tender comes as President William Ruto’s administration seeks to expand domestic mineral processing rather than rely solely on exporting unprocessed resources. In June 2026, Ruto says that Kenya was close to reaching a critical minerals agreement with the United States, with local processing among its priorities.

Mrima Hill’s estimated mineral wealth, however, should not be confused with confirmed mining revenue or commercial returns. The deposit’s development will depend on exploration, processing investment and the eventual project’s economic viability.

For Kenya, the forthcoming award will therefore be more than a choice between five competing groups. It will be an important test of how the country intends to attract international mining capital while securing greater domestic value from its mineral resources.