CS Joho issues tender for estimated Sh8 trillion Mrima mineral in coast

Mining and Blue Economy CS Ali Hassan Joho. [Nehemiah Okwembah, Standard]

Beneath the sacred forests of Kwale County lies a multi-billion-dollar mineral deposit. As global powers lock horns over critical minerals, Kenya is rolling the dice again on Mrima Hills, but this time, the stakes are higher, and the ghosts of past failures linger.

In a gazette notice dated March 24, Mining Cabinet Secretary Ali Hassan Joho invited qualified firms to submit expressions of interest to commercialise deposits of niobium and rare earth elements (REEs) at Mrima Hill. These minerals are the lifeblood of advanced electronics, clean energy systems, and military technologies.

The renewed push highlights Kenya’s growing appeal as a mining destination, driven by fresh geological data and a rising global demand for critical minerals.

However, it also thrusts Kenya straight into the centre of a bitter geopolitical contest between the United States and China over supply chains.

For years, Mrima Hill has attracted international interest. American officials have made multiple visits to the site recently, pushing for a value-added approach that includes local refining.

Conversely, China, responsible for about 90 per cent of global rare earth processing, has historically favoured an extract-and-export model.

The urgency has peaked following China’s recent imposition of export restrictions on rare earths and related processing equipment. This move has sent shockwaves through Western capitals, triggering rapid realignments to secure alternative sources. In recent months, Washington has aggressively courted nations like Malaysia, Thailand, and Australia, committing billions in investments to break Beijing’s monopoly.

Kenya has now joined this list. Marc Dillard, a senior U.S. government official in Kenya, late last year led a delegation to Mrima Hills, signalling Washington's strategic interest in the coastal deposits.

During a meeting in Washington, D.C. with Australian ambassador Kevin Rudd, Prime Cabinet Secretary Musalia Mudavadi confirmed Kenya’s intent to partner with reputable firms. Mudavadi emphasised that Kenya would only work with environmentally conscious companies that adopt global best practices, train local teams, and ensure full land restoration once mining concludes.

According to a 2022 geological mapping exercise, the government has identified five key minerals at the site: orange ground thrush, niobium, yttrium, thorium, strontium, and lanthanum. 

While a full economic viability assessment is still pending, the Ministry of Mining recently completed a nationwide airborne geophysical survey. "This data and the resulting grids serve as primary geophysical information for the winning bidder to conduct detailed exploration," CS Joho noted in the gazette notice.

To avoid the extractive mistakes of the past, the government is enforcing strict conditions. The tender will be conducted under the 2016 Mining Act, requiring investors to demonstrate technical expertise, financial strength, and a commitment to local processing and sustainability. Firms must also engage local communities and comply with Kenya’s framework on state participation in strategic minerals.

However, any new investor walking into Mrima Hills will be walking into a minefield of historical intrigue. Previous attempts to extract these minerals ended in a dramatic, multi-billion-shilling failure that exposed the dark underbelly of Kenya’s mining sector.

In 2013, Cortec Mining KeUK-a, a subsidiary of UK and Canada-bResources, filed a Wildcat Respecial Mining Licence after allegedly using political intermediaries to navigate Kenya's power structure.

During subsequent tribunal hearings at the International Centre for Settlement of Investment Disputes (ICSID), Cortec’s CEO, David Anderson, delivered explosive testimony.

He revealed that the late political businessman Jacob Juma, who acted as Cortec’s local face, had arranged a high-level meeting at the end of President Mwai Kibaki’s administration in 2013. The meeting included then-Secretary to the Cabinet Francis Kimemia, Mines Commissioner Moses Masibo, and Environment PS Ali Mohamed.

Licenceter, Cortec’s license was gazetted. Juma, who had succesper centdemanded a 30 percent stake in"intervention",r his "intervention," later escorted Cortec officials to the State House in Mombasa for a courtesy call with newly elected President Uhuru Kenyatta.

Anderson also testified that then-Mining CS Najib Balala threatened to cancel the license unless Cortec paid a Sh80 million (USD 620,000) bribe. Cortec refused to pay.

Balala subslicence, revoked the license, citing environmental breaches and procedural irregularities. Cortec challenged the revocation at ICSID but lost the case in 2018. 

The drama took a dark turn when Jacob Juma was assassinated in May 2016 in circumstances that remain unresolved. Following the ICSID loss, Mrima Hills went silent until now.

Beyond high-level corruption, the new miners must overcome two formidable hurdles: community resistance and environmental concerns.

The 157-hectare Mrima Hill is deeply revered by the local Mijikenda community. It hosts six of the 50 most sacred Kayas (traditional shrines). Scholarly records show that since 1952, at least five global mining firms have tried to dig up the hill, only to be repelled by locals willing to fight spiritually, legally, and physically.

Elder Ali Masudi notes that the forest is also an ecological gem, home to 47 bird species, including the rare Orange Ground Thrush.

Environmentalists have equally raised the alarm. Rare earth mining requires the use of highly toxic chemicals, posing severe risks to soil, air, and water. Globally, the process is known to produce low-level nuclear waste due to the presence of elements like thorium.

The only foreign company to successfully navigate Kenya's complex mining landscape on an industrial scale is Australia-based Base Titanium, which mined ilmenite and rutile in Kwale County. However, even Base Titanium endured 16 years of waiting, protracted land compensation battles, and human rights petitions before shipping its first export.

As CS Joho's tender process rolls out, the world will be watching. Africa’s mineral-rich nations are no longer just raw material suppliers; they are active negotiators demanding better terms.

For the residents of Mrima Hill, however, the promise of billions of dollars means little if it comes at the cost of their sacred heritage, their health, or their environment.

Whether the emerging entrants can finally unlock Mrima’s wealth cleanly and fairly remains a game of wait and see.