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Two Chinese mining firms pull out of Kenya’s rare earth and niobium extraction race as three American companies stand their ground among five remaining bidders
Two Chinese companies have withdrawn from the race to develop Kenya's Mrima Hill critical minerals deposit, leaving five international bidders, including three US-linked groups, competing for one of the country's most valuable untapped mineral resources.
Two major Chinese companies have exited the bidding process for Kenya's valuable Mrima Hill critical minerals deposit, leaving five international groups still in the race.
- Three of the remaining contenders are US-linked, with the others being an Australian consortium and a Kenyan-British joint venture.
- Kenya is emphasizing local mineral processing to boost economic benefits, while also facing environmental and cultural concerns related to the protected forest area and local communities.
- The outcome of the tender, expected by mid-November
2026, will reflect Kenya's efforts to balance foreign investment,
domestic priorities, and responsible resource management amid US-China
competition for critical minerals. The withdrawal comes as American companies increase their interest in Africa's critical minerals sector, seeking access to resources used in electric vehicles, electronics, aerospace equipment and advanced manufacturing.
Kenya's Cabinet Secretary for Mining, Hassan Ali Joho, confirmed on October 30, 2026, that two Chinese companies, Hunan Research Institute for Nonferrous Metals and Jinan Yuxiao Group Co. Ltd., had withdrawn from the bidding process for the Mrima Hill mineral project.
The companies have not publicly explained their decision, although reports indicate that at least one subsequently submitted a bid for another mining project in Kenya.
According to Reuters, five groups submitted proposals on October 21 to develop the deposit in Kwale County, 65 kilometres from the coastal city of Mombasa.
The remaining contenders comprise two American consortia, one US-affiliated group, an Australian partnership and a Kenyan-British joint venture.
Kenya expects to select a successful bidder within two to three weeks of Joho's October 30 announcement, potentially placing the decision in mid-November.
The project has attracted international attention since Kenya's Mines and Geological Department first identified the Mrima Hill mineral deposits in the 1930s, with subsequent exploration revealing rare earth and niobium resources now estimated to be worth tens of billions of dollars.
However, the estimated value represents the potential worth of the mineral resources rather than confirmed commercial returns.
US companies compete for Kenya's mineral wealth
Among the American contenders is Meridian Mineral Holdings, a consortium involving engineering company Fluor Corporation and consulting firm Tetra Tech.
Another bidder, Frontier Minerals LLC, includes ReElement Technologies, a US company specialising in rare earth processing and separation technology.
The third US-linked group, Mrima Earth, is led by Critical Metals Corp, which is also pursuing the Tanbreez rare earth project in Greenland.
In a statement issued on July 21, 2026, Tony Sage, Chairman of Critical Metals Corp, described the company's progress in the bidding process as a significant step in its expansion strategy.
"Being shortlisted for the final stage of this process is a defining moment for Critical Metals and our Consortium. Mrima Hill is precisely the kind of world-class, strategically located asset we have built this Company to pursue," Sage said.
The remaining contenders are Australia's RareX, in partnership with Iluka Resources, and Gem of Dreams, a Kenyan-British joint venture.
Speaking to reporters, Joho acknowledged the interest from American investors, citing their participation in the competitive bidding process.
"American entities have strongly showcased or demonstrated interest by participating in our transparent process in identifying the developer of Mrima Hill," Joho said.
The developments come amid growing competition between Washington and Beijing for access to resources used in modern manufacturing, clean energy technologies and advanced industries.
China remains a dominant player in global rare earth production and processing, while the United States has intensified efforts to diversify its supplies and reduce dependence on Chinese-controlled supply chains.
Under President Donald Trump's administration, Washington has made securing strategic minerals a priority, pursuing partnerships with resource-rich African countries.
Kenya joins the Democratic Republic of the Congo, Zambia, Angola and Tanzania in attracting American investment interest as it seeks to expand mineral exploration, extraction and domestic processing.
In June 2026, Kenyan President William Ruto said his country was close to reaching a minerals agreement with the United States, with a focus on developing local processing capacity.
Despite the growing American interest, Kenya's Mining Cabinet Secretary Hassan Ali Joho dismissed suggestions of external pressure over the Mrima Hill tender, maintaining that the government would follow a transparent selection process.
"We haven't had any conversation with anybody and we haven't offered any alternative to anybody. We want a transparent process," Joho said.
