Kenya in ‘advanced’ talks with US on critical minerals deal: minister

Kenya's mining minister, Hassan Ali Joho, revealed that talks with US government officials are at an advanced stage regarding a deal to develop the country's critical minerals processing industry. The negotiations, which involve multiple US departments including Commerce, Defense, and State, aim to establish refineries and processing plants in Kenya that would supply the US. Joho mentioned that various products, markets, and interests are being discussed.

Joho also highlighted the importance of incentives such as special economic zones, port access, infrastructure, and tax concessions for the successful implementation of the deal. The talks are closely linked to the bidding process for the Mrima Hill project, which is expected to yield tens of billions of dollars' worth of rare earth minerals, including niobium, cobalt, copper, and nickel.

Currently, Kenya's mining sector contributes about 1% to the country's GDP, but the government aims to boost this share to 10% within the next decade. Kenya is diversifying its economy from a service-based and agro-economy to a mining-focused one to drive industrialization and wealth generation among its citizens. The government is pushing for value addition rather than raw mineral exports.

Joho emphasized the need for local processing to create jobs and foster industrialization. The US has similar agreements with several African countries, including DR Congo, Nigeria, and Zambia, as it competes with China for control over critical mineral supply chains. African nations are prioritizing local processing and value addition over raw mineral exports.