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Highlights:
RareX and Iluka Resources have applied for prospecting rights to the Mrima Hill rare earths project in Kenya
A special purpose vehicle will be formed, with RareX leading technical and environmental initiatives
Iluka proposes an equity stake to gain economic participation and feed future production into its Eneabba refinery
RareX (ASX:REE) and Iluka Resources (ASX:ILU), both listed on the Australian Securities Exchange, have taken coordinated steps to gain access to the Mrima Hill rare earths and mineral project in Kenya. The application was submitted to the National Mining Corporation of Kenya, with the goal of obtaining rights to explore and develop the site, which is known for its concentrations of rare earth elements, niobium, phosphate, and manganese. This strategic move aligns with broader interest in diversifying rare earth supply chains and accessing critical minerals from geologically promising regions.
Structure of development through new special purpose entity
The consortium plans to create a special purpose vehicle to manage development activities at Mrima Hill. Under this structure, RareX will take a leadership role in conducting environmental studies, geological resource definition, and engineering planning. The company will utilise experience gained at its Cummins Range project in Western Australia, a rare earths site regarded as one of the largest undeveloped assets of its kind in the country. Cummins Range is understood to share comparable geological characteristics with the Mrima Hill deposit.
Iluka’s proposed role and strategic objectives
Iluka Resources has outlined its plan to participate through a proposed equity share in the new entity. The proposed arrangement includes an economic interest in the Mrima Hill project during the exploration phase. Iluka is also engaging in discussions around offtake terms for rare earth and mineral outputs from the project. These materials are under review as future feedstock for its Eneabba rare earths refinery, which is currently under construction in Western Australia.
Cost responsibilities and consortium structure
RareX will be responsible for all associated costs during the period leading up to the issuance of a mining licence. Once a licence is granted, Iluka retains an option to continue its involvement by making a financial contribution toward the project. This arrangement enables RareX to advance early-stage work while preserving Iluka’s long-term participation in the development.
Strategic outlook for regional critical mineral projects
Mrima Hill is recognised within East Africa for its mineral-rich geological composition, attracting attention from companies seeking to expand their rare earths and critical minerals exposure. The collaboration between RareX and Iluka reflects an effort to leverage combined technical expertise and processing capabilities across Australian and African jurisdictions. The application to Kenya’s mining authorities marks an early-stage step in advancing a mineral asset that aligns with the growing importance of rare earth supply chains across global markets.
