Mrima Hill: Kenya Weighs Mining Bids Amid Local Opposition

Kenya’s Mining Ministry is evaluating five proposals to extract minerals from Mrima Hill, a forested area near the country’s Indian Ocean coast. The site contains deposits of niobium and rare earth elements, materials critical for electric vehicle motors, wind turbines, and defense technologies. A technical committee is currently reviewing the bids, with a final announcement expected within two to three weeks.

The government aims to shift its economic reliance away from traditional sectors by expanding the mining industry. Mining Minister Hassan Joho stated that the sector’s contribution to gross domestic product should rise from approximately 1% to 10% over the next decade. This target encompasses the entire mining sector, not just the Mrima Hill project. In 2013, projections estimated the project’s potential gross revenue at $62 billion over 23 years, based on commodity prices from that period and excluding development and operating costs.

Two major international consortions have submitted offers. RareX, an Australian exploration company, partnered with Iluka Resources to file a technical and financial proposal on Oct. 21. Critical Metals Corp., a Nasdaq-listed firm, announced in July that its consortium had been shortlisted for the final stage of bidding. The ministry has not disclosed the nationalities of all bidders, citing confidentiality.

Local stakeholders question the timing and scope of the development. Justus Mwero, chairman of the Mrima Farm Owners Community-Based Organization, represents about 500 registered farmers. He noted that residents have received little information regarding the specific extraction methods or the projected impact on their livelihoods. Farmers fear that relocation might force them onto less productive soil, threatening food security in a region where agriculture is the primary source of income.

The Digo community, which has lived near the hill for generations, views the site as a cultural cornerstone. Masoud Suleiman Mwarizo, chairman of the Mrima Hill Digo Community Trust, stated that the area contains a sacred forest known as a kaya, where ancestors are buried. The trust, formed in 2025 to protect community interests, has declared it will refuse any digging of the hill. The Mrima Hill Sacred Grove forest reserve was designated a national monument in 1992.

Legal challenges are currently unfolding in the High Court in Kwale. The Centre for Litigation Trust filed a petition on June 22 to suspend a proposed Kenya-U.S. agreement for mineral development. The group argues the bidding process lacked transparency and public participation. Kenya’s attorney general challenged the court’s jurisdiction, and a ruling on that objection is scheduled for Nov. 6. No court order currently blocks the implementation of the agreement.

Under Kenya’s Mining Act, a license holder must sign a community development agreement before operations begin. Harry Kimtai, principal secretary at the Mining Ministry, said communities will be encouraged to engage directly with the winning bidder. If disputes arise, the government will monitor the company’s compliance with the law and explain residents’ rights. The ministry claims it consulted with the community before advertising the tender.

Environmental and health concerns remain unresolved. Fakii Omar of the Kwale Mining Alliance asked whether extraction would involve open-pit mining and what the impact on local health would be. The National Environment Management Authority did not respond to questions about environmental assessments or the approval process. RareX stated its proposal includes further study to determine if the deposit supports underground mining, which would reduce surface disruption.

Rama Bindo, treasurer of the Digo Community Trust, pointed out that many residents lack formal title deeds. He argued this makes them vulnerable to land grabbing. The government has not publicly explained how the U.S. agreement relates to the current tender. Residents continue to demand an open forum to negotiate terms directly with the eventual operator.