Highlights

  • Kenya's Mining minister said a decision on the Mrima Hill rare earths and niobium tender is expected within weeks.
  • An Australian consortium of RareX and Iluka Resources faces mostly United States-linked rivals, including a group involving Fluor.
  • RareX and Iluka warned that Fluor is not licensed to use intellectual property linked to Iluka's Eneabba refinery.

Australia's rare earths sector is increasingly looking beyond domestic borders as companies seek feedstock and partnerships that can support processing capacity at home. Among Rare Earth Minerals names on the ASX, RareX Limited (ASX:REE) and Iluka Resources Limited (ASX:ILU) are drawing attention after their joint bid for Kenya's Mrima Hill critical minerals deposit is competing against mostly American contenders, including a consortium involving engineering group Fluor. Kenya's mining minister, Hassan Ali Joho, told a decision would be announced within weeks. The contest highlights how African deposits are becoming part of the geopolitical push to diversify rare earth Supply chains, and how Australian companies are positioning themselves within that race.Rare Earth Minerals

The Mrima Hill Tender

Mrima Hill lies in southern Kenya, not far from the port city of Mombasa. Joho said preliminary indicators suggest the deposit contains rare earths and niobium of very substantial value, although these are preliminary indications rather than a formal resource. Several contenders lodged tenders on the closing date in late October.

The field includes a pair of United States consortia, a United States-affiliated group, a Kenyan-British joint venture and the Australian consortium of RareX and Iluka. Meridian Mineral Holdings brings together Fluor and Tetra Tech, Frontier Minerals includes rare earths start-up ReElement Technologies, and Mrima Earth is led by Nasdaq-listed Critical Metals Corp. A pair of Chinese bidders withdrew from the process, and Joho said he did not know why.

RareX and Iluka's Consortium

RareX and Iluka formed their consortium last year, lodging an application with Kenya's National Mining Corporation that proposed a special purpose vehicle in which Iluka would hold a stake, with the vehicle entering a joint venture with the state miner. The partners also signed a binding offtake term sheet for potential rare earth supply to Iluka's Eneabba refinery in Western Australia. RareX said in July that it had been shortlisted.

Under the proposed structure, RareX would lead de-risking and early-stage development, including community engagement, environmental assessments, technical and metallurgical studies, and value chain engineering. It has said laboratory and pilot plant facilities in Kenya would only follow once a social licence to operate is secured. RareX has cautioned that the grant of a licence remains subject to the discretion of Kenyan authorities.

Intellectual Property Dispute With Fluor

A notable element of the contest is the relationship between Iluka and Fluor. Fluor previously built Iluka's Eneabba rare earths refinery, yet the companies now sit in rival consortia. A RareX and Iluka representative told that Fluor is not licensed to use the intellectual property associated with Eneabba, and warned that legal action would be highly likely if Fluor used that intellectual property to design or build a Mrima Hill plant. Fluor and Meridian did not respond ' request for comment.

For Iluka, Eneabba represents a central part of its strategy to expand from mineral sands into rare earth refining with Australian government support. Securing additional feedstock from overseas could help support utilisation of the refinery over time, while protecting the associated technology is an important commercial consideration.

Geopolitics and Kenya's Position

Joho told that Kenya faced no pressure from either Beijing or Washington and had not engaged directly with bidders. Kenya's president has previously said the country would pursue multiple partnerships rather than choose between the United States and China.

The United States has prioritised access to critical minerals and struck agreements with several African nations to reduce reliance on China. A State Department spokesperson said American companies have proven track records and a commitment to local processing, underscoring the competitive environment facing the Australian consortium.

Risks and Considerations

The outcome of the tender remains uncertain, and even a successful bid would require exploration, studies, approvals and funding before any production. Risks include jurisdictional and community factors, potential legal disputes over intellectual property and competition from well-backed rivals. Rare earth prices and the pace of Western government support for non-Chinese supply chains will also influence the Economics of any eventual development, as will the ability of partners to agree on terms with Kenya's state miner.

Australian Rare Earths Ambitions Reach East Africa

The Mrima Hill contest places RareX and Iluka at the centre of a high-profile, geopolitically charged tender for rare earths and niobium. The Australian consortium brings an existing refinery pathway and a defined development plan, while facing well-connected American rivals and an unresolved intellectual property question involving Fluor. For Australian market participants, the tender illustrates how ASX-listed rare earth companies are seeking overseas feedstock to strengthen domestic processing, within a sector shaped heavily by government policy and supply chain diversification.