US–China Rivalry Heats Up Over Kenya’s $62 Billion Rare Earth Deposits at Mrima Hill
Africa is fast becoming the epicenter of a new global “mineral Cold War”, as world powers scramble to secure access to the critical minerals essential for electric vehicles, renewable energy systems, and advanced electronics.
At the heart of this growing contest lies Kenya’s Mrima Hill — a 157-hectare forest in Kwale County — now recognized as one of Africa’s richest rare earth deposits, with an estimated $62 billion in mineral value.
According to earlier studies by Cortec Mining Kenya, a subsidiary of UK- and Canada-based Pacific Wildcat Resources, Mrima Hill holds significant reserves of niobium and other rare earth elements used in steelmaking, aerospace engineering, and clean energy production.
Global Powers Compete for Access
Mrima Hill has become a flashpoint in the intensifying race between the United States and China to diversify critical mineral supply chains.
In June, Marc Dillard, then U.S. interim ambassador to Kenya, visited the site as part of Washington’s diplomatic push to secure access to Africa’s strategic mineral resources.
Meanwhile, the South China Morning Post reported that Chinese nationals had attempted to visit the area in recent months but were turned away by local guards, signaling growing tensions over foreign interest.
Adding to the competition, Australian firms RareX and Iluka Resources have announced plans to explore the site. Local reports also indicate a rush of land speculators and investors to nearby coastal villages, driving up property prices and stirring unease among residents.
Local Communities Caught Between Opportunity and Fear
For the local Digo community, Mrima Hill is more than a mineral-rich site — it is a spiritual and cultural sanctuary that holds ancestral shrines, medicinal plants, and graves.
Many residents depend on the area’s fertile soil for small-scale farming, even as more than half the population lives below the poverty line.
“People come here with big cars, but we turn them away,” said Juma Koja, a local forest guard, in an interview with Agence France-Presse. “I do not want my people to be exploited again.”
Others, however, view mining as a path to prosperity.
“Why should we die poor while we have minerals?” asked Domitilla Mueni, a local farmer, who has started improving her land in anticipation of future development.
Kenya’s Troubled Mining Past
Kenya’s mining sector has long been mired in controversy and corruption.
In 2013, the government revoked Cortec Mining’s license to operate in Mrima Hill, citing environmental concerns and irregular licensing procedures. The company alleged the move was retaliation for refusing to pay a bribe to then-Minister of Mining Najib Balala, a claim Balala denied.
Following years of disputes, Kenya imposed a temporary moratorium on new mining licenses in 2019 to review its regulatory framework and combat graft.
With global demand for rare earths soaring — and China restricting exports — Nairobi has now reopened its doors to investors under a new wave of reforms.
The Ministry of Mining recently unveiled tax incentives, a digital licensing registry, and stronger transparency measures aimed at raising the sector’s GDP contribution from 0.8% to 10% by 2030.
Africa’s Broader Mineral Strategy
Across the continent, countries are racing to reclaim control over their mineral wealth. From Zambia’s copper and cobalt to Namibia’s lithium and the Democratic Republic of Congo’s rare earths, Africa is emerging as a critical player in the global clean-energy transition.
To guide this transformation, the African Union (AU) has launched the Green Minerals Strategy, a continental blueprint aimed at ending raw mineral exports and promoting local refining, manufacturing, and industrialization.
Under the African Continental Free Trade Area (AfCFTA), policymakers are now working to build regional mineral value chains, enabling African nations to trade and add value to resources within the continent itself.
The Stakes for Kenya
Experts warn that Kenya’s success will depend on governance, transparency, and local benefit sharing.
“There’s a romantic view that mining is an easy way to get rich,” said Professor Daniel Weru Ichang’i, a retired economic geologist at the University of Nairobi. “But corruption and weak institutions make it risky. If Kenya wants to benefit, it must ensure national interests come first.”
As the global race for critical minerals accelerates, Mrima Hill has become both a symbol of opportunity and a test of governance — one that could determine whether Kenya’s mineral riches fuel local prosperity or repeat the continent’s long history of resource exploitation.
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