Iluka and RareX Partner on Kenya’s Mrima Hill Rare Earths Project

RareX

Iluka and RareX rare earths partnership

Iluka and RareX rare earths partnership marks a significant step in securing sustainable feedstock for Australia’s Eneabba refinery. Iluka Resources and RareX announced a strategic alliance to develop Kenya’s Mrima Hill rare earth and niobium project, aiming to support Iluka’s downstream processing plans.

The Mrima Hill site, owned by the Kenyan government, may supply critical materials to Iluka’s 23,000 t/yr Eneabba rare earth oxide refinery in Western Australia. The Eneabba refinery is currently under construction, with initial feedstock sourced from Iluka’s domestic concentrate stockpile.

Securing Offtake and Joint Venture Rights in Kenya

Iluka and RareX formed a consortium with plans to operate Mrima Hill as a joint venture with Kenya’s state-owned National Mining Corporation (NAMICO). The deal includes a binding offtake term sheet, granting Iluka exclusive rights to purchase all rare earth and heavy mineral products at a 10% discount.

However, the agreement is contingent on government approval and commercial-scale production. Iluka currently holds a 25% stake in the consortium, and will pay RareX $10 million upon receipt of the mining license.

Expanding Iluka’s Rare Earth Feedstock Strategy

Iluka and RareX rare earths partnership adds international supply diversity to Iluka’s refining roadmap. The Eneabba plant will initially run on a 1 million tonne stockpile but aims to supplement it with external sources like Mrima Hill and Browns Range.

Iluka also signed a rare earth concentrate agreement with Northern Minerals for 30,500 tonnes from the Browns Range project. Additionally, Iluka is developing domestic mining capacity to produce 20,000 t/yr of concentrates in the future.

The Metalnomist Commentary

This Iluka and RareX rare earths partnership reflects growing global urgency to diversify rare earth supply chains beyond China. With government approval, Mrima Hill could become a vital node in Australia’s downstream rare earth production strategy.