Australia has joined global powers’ scramblefor the estimated $62 billion (Sh18 trillion) worth of rare minerals depositsin Mrima Hills in Kwale county.
It expressed interest in the deposits during President WilliamRuto’s visit to Washington last week.
Canberra expressed the interest through Prime Cabinet Secretaryand CS for Foreign Affairs Musalia Mudavadi on December 3 when he met AustraliaAmbassador to the US Kevin Rudd.
Rudd is also a former prime minister and foreign minister.
Two Australian mining companies, RareX and Iluka Resources, haveformed a consortium to bid for mining rights at Mrima Hill, which has hugedeposits of rare earth elements, among them niobium, phosphate and manganese.
According to a 2013 study by Cortec Mining Kenya, the157-hectareforest in Kwale is estimated to contain mineral deposits worth more than $62billion (Sh18 trillion).
The move by Australia, adding to the already establishedinterests by the US and China potentially position Kenya as a major criticalmineral supplier.
Following the meeting, Mudavadi said Kenya is actively seekinginvestors with the experience, expertise and financial strength to responsiblymine Kenya’s rare earth minerals and unlock their full national value.
“In a meeting with Amb Rudd I underscored Kenya’s commitment topartnering with reputable mining firms that can support and train our teams toextract these resources safely, sustainably and in a way that uplifts localcommunities, especially in Mrima Hills, Kwale county,” he said.
Mudavadi with significant rare earth deposits in Kwale, Kenya isdetermined to work “only with environmentally conscious companies that gobeyond profit”.
He said the government will only consider working with companiesthat adopt global best practices and ensure full land restoration once miningis done.
Vouching for the Australian companies, Ambassador Rudd saidtheir firms have a strong global reputation, guided by strict nationalstandards, over a century of mining experience, and a proven record ofcommunity empowerment.
Mudavadi had in October also said Kenya was seeking to drawlessons from Australia’s world-renowned mining sector.
This was during a meeting with Australia’s Assistant Ministerfor Foreign Affairs and Trade Matt Thistlethwaite in Nairobi.
Mudavadi said the two countries were exploring practical areasof collaboration that could transform Kenya’s mining landscape while creatingjobs and exports.
Base Titanium, which operates the Kwale Mineral SandsProject, is among the top Australian mining companies in Kenya.
The US has expressed interest in the minerals as part of itswider outreach to secure the critical resource in Africa.
President President Trump has in the recent past intensifiedbids to secure critical minerals on the continent, with the latest of thoseefforts being the Washington Peace Accord between Rwanda and the resource-richDRC last week.
Foreign policy analysts opine that the strategy seeks to counterChina’s global economic and technological influence.
Former US Charge de affaires Marc Dillard in June visited MrimaHill and met with Kwale county leadership and local elders to “exploreopportunities for collaboration”.
China has also been a top buyer of titanium minerals from Basetitanium but sale dropped following the closure as shift moves to Mrima Hills.
Kenya had in 2016 contracted Chinese firm, GeologicalExploration Technology Institute to undertake an airborne mineral mappingproject to update its old geological data at a cost of Sh7 billion funded byChina’s Exim Bank.
There have, however, been concerns by local communities who fearabout land loss, cultural disruption and lack of benefits from the resource.Mrima Hills is an ecologically fragile and culturally sacred site, particularlyfor the Digo community.
Public policy analyst and social commentator Bilal Mwarandusays if managed wisely, the natural resource could transform the lives anduplift generations in the area but warns that mismanagement risks deepeninginequality, environmental degradation and social discontent.
“Any form of exploitation must therefore be sustainable,transparent and lawfully guided by Kenya’s constitution particularly Articles40, 42, 69 and 71 and aligned with global best practices in resourcegovernance.
“The Environmental and Social Impact Assessment for thisproject must be thorough, inclusive and independently audited, ensuringmeaningful mitigation measures for any potential harm to biodiversity, humanhealth and cultural heritage,” Mwarandu says.
The cited constitution provisions address fundamental rightsrelated to property and environmental protection, along with state obligationsregarding natural resources.
Kenya was named among African states struggling to ensurecitizens receive fair benefits from their mineral wealth.
The Africa Governance Report 2025 released by the African PeerReview Mechanism (APRM) under the AU highlighted concerns over inequitableresource distribution and weak community engagement across the continent,particularly in Kenya, the DRC, Zambia and Tanzania.
The report said mining operations in these countries often failto adequately compensate local communities and taxpayers, a situation thatcould fuel social unrest and conflict if not addressed.