 |
| RareX |
Strategic Partnership Targets Rare Earths, Niobium, Phosphate and Manganese Supply Chains
ASX-listed RareX has partnered with Iluka Resources to form a consortium to develop the Mrima Hill project in Kenya, a world-class deposit rich in rare earths, niobium, phosphate, and manganese.
A formal application has been submitted to Kenya’s National Mining Corporation (Namico) to form a joint venture (JV) for the acquisition and development of the site. If approved, a special purpose vehicle (SPV) will be established, with Iluka holding a 25% equity stake and rights to rare earth offtake for its Eneabba rare earth refinery.
RareX to Lead Project De-risking and Local Engagement
RareX will lead initial de-risking efforts, prioritizing socio-environmental impact studies, community engagement, and metallurgical research. Plans include local laboratory and pilot plant installation, modeled after support structures from the nearby Kwale Mineral Sands Operation.
The JV structure, once approved under Kenya’s Mining Act, will allow RareX to take the lead in resource definition and engineering studies required to obtain a mining licence.
Offtake Agreement and Strategic Value Chain Development
A binding offtake term sheet has been signed between RareX and Iluka. The agreement, which will activate upon the grant of a mining licence and project commencement, would allow Iluka to process the rare earth concentrate in Australia. Simultaneously, RareX plans to develop local value chains for phosphate, manganese, and niobium to supply Kenya’s domestic steel and agricultural sectors.
RareX Eyes Funding and Broader Geostrategic Impact
RareX is in early-stage discussions with Global Emerging Markets for a working capital facility, while also considering alternate funding options. Managing Director James Durrant emphasized the potential to create a unique mine-to-metal solution aligned with allied government-backed critical mineral supply chains.
If successful, Mrima Hill could support deeper strategic cooperation between Australia and Kenya, both members of the Indian Ocean Rim Association, and critical suppliers of clean energy and defense-related metals.
Tags
RAREMETAL
