US To Help Kenya Develop Critical Minerals

The United States will help Kenya develop a critical minerals processing industry, a senior American official said on Wednesday.

Kenya is considering bids to develop the Mrima Hill deposit on the country’s coast, which is expected to contain tens of billions of dollars’ worth of rare earth minerals and niobium, a metal used in aerospace manufacturing.

Frank Garcia, the US assistant secretary of state for Africa, said critical minerals were a priority for President Donald Trump and Secretary of State Marco Rubio. He said Washington was ready to support Kenya in developing a mining sector that attracts legitimate businesses, respects communities and contributes to global supply chains.

The US International Development Finance Corporation is supporting a pipeline of African rare earth projects as Washington seeks to reduce dependence on China, which dominates the global supply chain and has tightened export controls in recent years.

Kenyan President William Ruto welcomed the US support, saying local mineral processing would help create jobs. He said Kenya was accelerating the responsible exploration and development of rare earth elements, titanium, graphite, lithium, niobium and other strategic resources.

US company Critical Metals Corp and Australia’s RareX said in July they had been shortlisted to compete for rights to develop Mrima Hill. Kenya’s government has not published a shortlist.

Ruto told Reuters in June that Kenya and the United States were close to reaching a critical minerals agreement, but neither side provided an update on the deal on Wednesday.

Garcia said Washington favoured a model that includes local processing and value addition in countries where minerals are produced.

The details and timing of any US-Kenya agreement on critical minerals have not been provided.

SOURCE: Reuters