New firm shows interest in Mrima Hills' Sh8.1 trillion mineral deposits

The Sh8.1 trillion (USD 62.1 billion) rare earth deposits at Mrima Hills, Kwale County, have once again attracted the interest of another investor seeking a slice of the project.

Mrima Hills Consortium, a London-based private company known for the development of rare earth assets, says it has Sh130 billion (USD 1 billion) ready to inject into the project.

The money has been raised through a consortium, Mrima Earth Limited, said to have US-based shareholders and drawing its leadership team from Mrima Hills Consortium.

A document prepared by Mrima Hills Consortium notes that Mrima Hills has the potential to be developed into one of the world's largest rare-earth deposits, producing a range of products.

"Given the size of the deposits, we could expect production and revenue being generated over more than 30 years," the firm says.

The firm says rare earths, while an obscure group of metals, have become fundamental to the global decarbonisation strategy.

"They are critical to modern high-strength magnets, with the high-tech industry driving its future growth. Mrima Hill has the potential to be developed into one of the world's largest rare earth deposits, producing a range of products," the firm says.

The site contains minerals such as niobium, key in the manufacturing of batteries, powerful magnets and mechanical components due to its high melting point and rust-proof properties.

The firm says the site's good infrastructure - citing the three-kilometre distance from the main highway and 80 km from the Mombasa Port - makes the investment worthwhile.

"Current expected infrastructure studies, however, will determine how the infrastructure network will need to be upgraded, for both transport and power," the firm says.

The firm says it has scouted markets for the minerals in North America, Europe, Asia and parts of Africa.

"Kenya has an opportunity to become a rare earth industrial hub - harnessing the rare earth value chain to accelerate industrialisation and broad-based sustainable development in Africa," the firm says.

It adds that the growth of electric vehicles and offshore wind power is increasing the demand for rare-earth permanent magnets.

"The rest of the world can no longer depend on China as its rare earth source - this creates an exponentially growing market for Kenya," the firm adds.

The firm says rare earths, while an obscure group of metals, have become fundamental to the global decarbonisation strategy.

"They are critical to modern high-strength magnets, with the high-tech industry driving its future growth. Mrima Hill has the potential to be developed into one of the world's largest rare earth deposits, producing a range of products," the firm says.