ASX-listed RareX has formed a consortium with fellow Australian miner Iluka Resources to bid for the exploration and development of Kenya’s Mrima Hill project, the company announced on April 22.

The application, lodged with the National Mining Corporation of Kenya (Namico), seeks a prospecting licence and proposes a joint venture (JV) if approved.

Under the proposal, a special purpose vehicle (SPV) will be created, with Iluka holding a 25% stake. RareX would lead the project’s de-risking and early-stage development, with an initial focus on community engagement, environmental assessments, and technical studies. A binding offtake term sheet has also been signed, outlining potential supply of rare earths to Iluka’s Eneabba refinery in Western Australia.

The proposed Mrima Hill venture comes as Australia and its allies step up efforts to diversify global supplies of critical minerals amid concerns over China’s market dominance. According to the International Energy Agency, China currently controls over 85% of the world's rare earth refining capacity. Mrima Hill hosts one of Africa’s most significant known deposits of niobium and rare earth elements, positioning Kenya as a potential key supplier of inputs vital to clean energy and high-tech manufacturing. The partnership could also support Australia’s ambitions to build secure, government-backed critical mineral value chains.

The application is currently under review by Namico and the State Department for Mining. RareX cautioned that “the grant of the prospecting licence remains subject to discretion of Namico and the Cabinet secretary”. If approved, the SPV would enter into a JV with Namico under the terms of Kenya’s Mining Act.

RareX, a rare earths exploration firm, will oversee further metallurgical work and value chain engineering, including establishing laboratory and pilot plant facilities in Kenya. All work will proceed only after securing a social licence to operate.

Iluka Resources, one of the world’s top mineral sands producers, is expanding into rare earth processing through its Eneabba refinery, supported by the Australian government.

RareX is also in early talks with Global Emerging Markets for potential working capital financing and may explore additional funding options. The company aims to involve experienced community development firms and rehire local teams from the nearby Kwale Mineral Sands Operation, now entering closure.