Ruto, Rubio talks put Kenya’s critical minerals in US sights

The US is stepping up its interest in Kenya’s critical minerals at a time when President William Ruto’s administration is seeking to develop processing capacity within the country instead of exporting minerals in raw form.

The issue featured prominently during a meeting between President Ruto and US Secretary of State Marco Rubio on September 21 on the sidelines of the United Nations General Assembly (UNGA) in New York.

According to a statement issued by the US Department of State, the two leaders discussed commercial diplomacy and regional peace and security, with critical minerals emerging as a key area of economic cooperation. The Secretary of State sought opportunities for American companies to participate in the sector.

“They spoke about how critical minerals opportunities in Kenya can position the country as a key player in the sector while presenting opportunities for US firms to provide value addition,” said Department of State spokesman Tommy Pigott.

The discussions come less than two weeks after a senior US official said Washington was prepared to support Kenya in developing industries around its critical-mineral deposits.

These developments point to an expanding US commercial interest in Kenya and Africa’s mineral resources as it seeks to reduce dependence on China.

Earlier this month, US Assistant Secretary of State for African Affairs Frank Garcia said they wanted American companies to invest in mineral processing, worker training, technology transfer and industries that could emerge around Kenya’s deposits.

Mr Garcia expressed the Donald Trump administration’s willingness to help Kenya develop processing facilities and stressed that American companies wanted to participate in value addition rather than simply extract minerals and ship them abroad.

The renewed focus has placed the country’s mineral resources at the centre of growing international interest.

In the Coast region, rare earth elements and niobium at Mrima Hill in Kwale County have particularly attracted interest from several international companies as Kenya considers how to develop the resource.

Other minerals such as titanium, chromite, coltan and manganese have also been found spread across other coastal counties, including Tana River and Kilifi.

Rare earth elements are used in a range of high-technology products, while niobium is used in the production of stronger and lighter metals, including for aerospace, weaponry and other industrial applications.

Apart from the US, Australian firms have also shown interest in prospecting for minerals at Mrima Hill. The area is estimated to have rare earth deposits worth $62.4 billion (Sh8 trillion) and niobium deposits worth $35 billion (Sh4.5 trillion).

In April 2013, Canadian and UK-linked Cortec Mining Kenya Ltd was granted a 21-year Special Mining Licence for the Mrima Hill project by the Department of Mines and Geology.

Later in August, the licence was revoked when the government cancelled all mining licences issued that year for a 60-day review period on the grounds that they had been irregularly awarded.

The company took the matter to the International Centre for Settlement of Investment Disputes (ICSID), an international institution that helps resolve investment disputes between foreign investors and governments.

The tribunal rejected the investors’ claims, finding, among other things, that they had not obtained the mining rights in accordance with Kenyan law.

Currently, a petition seeking to block the government’s plans for prospecting and mining at Mrima Hill is before the High Court in Nairobi. Residents of Kwale, through the Centre for Litigation and Trust, told the court that the project could threaten their land, water resources, cultural heritage and livelihoods.

The residents are also concerned about possible radioactive and toxic waste from mining activities and displacement without adequate compensation.

Mining Cabinet Secretary Hassan Joho, who is in Kenya’s delegation to New York, reiterated the government’s position during an Africa Minerals Strategy Group (AMSG) High-Level Roundtable on Critical Minerals Development in Africa.

“Kenya’s position is clear we cannot compromise on local beneficiation. Our rare earths, lithium, graphite, copper, nickel and niobium must be refined and processed domestically before export, so that value addition, technology transfer and skilled employment remain in Africa,” Mr Joho stated.

He added that the rising demand for critical minerals has placed the continent at a defining moment in the global minerals economy, providing an opportunity to be a major player in global supply chains.

The US Department of State said the critical-minerals discussion was part of a broader strategic relationship between the two countries, describing Kenya as a major non-NATO ally and a growing trade partner.

Mr Rubio also expressed appreciation for Kenya’s cooperation with the US Government in implementing what Washington calls its new and holistic approach to the two countries’ health partnership under the America First Global Health Strategy, as well as Kenya’s role in efforts to resolve regional conflicts.

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