A new memorandum of understanding between the U.S. Strategic Metals (USSM) and Australia’s RareX Limited marks a significant step in Washington’s campaign to rebuild Western control over the minerals that power modern technology and defense systems.
- •The agreement, signed in late October and witnessed by the U.S. State Department officials, links RareX’s mining operations with processing facilities in Missouri operated by U.S. Strategic Metals.
- •It will target heavy rare earths such as dysprosium and terbium, elements vital to high-performance magnets, electric vehicles, and aerospace manufacturing; as well as gallium and scandium.
- •Following this deal, a more strategic component lies further afield: RareX’s development plans for Mrima Hill in Kenya, one of the region’s most significant deposits of rare earths and niobium.
“We are excited to collaborate with RareX to strengthen the allied critical minerals network. U.S. Strategic Metals' processing and refining capabilities in Missouri are designed to serve America's domestic needs while supporting partners who share our commitment to ethical, secure, and sustainable sourcing,” said Stacy W. Hastie, Founder & CEO of USSM.
The move is part of a wider U.S. effort to curb dependence on Chinese mineral refining and to secure supply from allied economies.
The Mrima Hill Play
The 157-hectare Mrima Hill forest in Kwale County is believed to hold mineral deposits valued at more than US$62 billion, according to earlier geological assessments by Cortec Mining Kenya.
Earlier this year, RareX Ltd. and Iluka Resources Ltd. formed a consortium to bid for rights. The two Australian firms formally applied to the National Mining Corporation (NAMICO) for a prospecting licence under the country’s Mining Act.
If approved, the proposal will move to the Cabinet Secretary for Mining, Blue Economy and Maritime Affairs for joint venture consideration with NAMICO. Under the plan, RareX would lead community engagement, environmental oversight, and technical studies through a new special purpose vehicle (SPV) dedicated to de-risking and development.
Iluka, which operates the Eneabba rare earth refinery in Western Australia, would hold a 25% ownership stake in the SPV and a 20% economic interest during the prospecting phase. The arrangement includes a binding conditional offtake term sheet granting Iluka rights to all rare earth and heavy mineral products extracted from Mrima Hill, potentially linking the rare resource directly to Australia’s refining network.
The mineral site could eventually feed ore into U.S. or allied processing hubs, effectively extending Washington’s critical-minerals corridor from Africa to North America.
“This partnership represents a natural alignment between Australia's upstream mineral capability and the United States' growing downstream industrial base. RareX's focus is on developing reliable, multi-mineral feed sources such as Cummins Range, and potentially Mrima Hill, to serve transparent, allied supply chains,” said James Durrant, Managing Director & CEO of RareX Limited.
For the United States, the deal underscores the urgency of establishing secure, non-Chinese sources of materials essential for both industrial and defense applications. For Kenya, it offers the prospect of attracting long-term capital and technology transfers, while positioning itself as East Africa’s gateway in the global energy-transition economy.
Mrima Hill has been subject to years of regulatory and legal scrutiny, underscoring the need for clear governance as Kenya reopens the resource to development. Any Western-aligned venture will have to balance commercial ambition with environmental and community safeguards to avoid repeating past missteps.
Though non-binding, the RareX-US Strategic Metals memorandum signals a broader reordering of mineral geopolitics. It ties together Australian extraction, African reserves, and U.S. refining capacity into a network designed to rival Beijing’s dominance in global mineral supply chains.
