US and China interest in Kenya’s $62 billion rare earth site sparks local concern.

Kenya has become the latest focal point in the global contest for critical minerals, with Mrima Hill on the country’s southern coast identified as one of Africa’s richest sources of rare earth elements used in electric vehicles, renewable energy systems, and advanced electronics.

The 157-hectare forest in Kwale County is estimated to contain mineral deposits worth more than US$62 billion, according to earlier studies by Cortec Mining Kenya, a subsidiary of UK- and Canada-based Pacific Wildcat Resources.

The site holds niobium and other valuable minerals used in steelmaking, aerospace engineering, and clean-tech production.

The discovery has drawn the attention of global powers seeking to diversify their critical mineral supply chains. In June, Marc Dillard, then interim U.S. ambassador to Kenya, visited Mrima Hill as part of Washington’s diplomatic effort to secure sustainable access to Africa’s rare earths.

Adding to the contest, an Australian consortium of mining firms, RareX and Iluka Resources, has announced plans to explore the site, while land speculators and investors are reportedly flocking to nearby coastal villages.

The renewed global interest has stirred unease among residents, mainly from the Digo ethnic group, who fear displacement and exclusion from any future mining benefits.

For the people of Mrima Hill, the attention from foreign investors brings both anticipation and apprehension. The forested hill is more than a potential mining site; it holds sacred shrines, medicinal plants, and ancestral graves that represent the spiritual centre of the Digo community.

Residents fear that large-scale mining could trigger evictions, environmental degradation, and the erosion of cultural heritage, echoing Kenya’s past challenges with resource extraction.

However, while some fear the loss of heritage, others see opportunity in mining. “Why should we die poor while we have minerals?” said Domitilla Mueni, a farmer who has begun developing her land to increase its value ahead of possible projects.

Kenya’s mining sector has long been marked by disputes between investors and the government.

In 2013, authorities revoked the licence of Cortec Mining to operate in Mrima Hill, citing environmental concerns and irregularities in the licensing process.

Source: Africabusinessinsider