RareX and Iluka Team Up to Unlock Kenyan Rare Earths as Australian Discoveries Surge

Strategic Consortium Targets Kenyan Rare Earths

RareX Limited (ASX: REE) has taken a decisive step in expanding its critical minerals footprint by entering a consortium agreement with Iluka Resources (ASX: ILU) to pursue the Mrima Hill rare earth-niobium-phosphate-manganese project in Kenya. The consortium has formally applied to the National Mining Corporation of Kenya (NAMICO) for a prospecting licence, aiming to establish a special purpose vehicle (SPV) to de-risk and develop the project. While the application is under review with no guarantee of approval, this move signals RareX’s ambition to secure primary deposits critical to Western supply chains.

The consortium agreement outlines Iluka’s 25% stake in the SPV and potential offtake arrangements, including rare earth feed for Iluka’s Eneabba refinery. RareX will lead socio-environmental assessments and metallurgical studies, emphasizing community engagement and local value chain development to secure a social licence to operate.

Cummins Range Emerges as a Multi-Critical Mineral Hub

In Western Australia’s Kimberley region, RareX’s Cummins Range project has revealed high-grade gallium assays, some of the highest reported in Australia, alongside significant scandium content. Historical drilling data shows gallium grades exceeding 100 g/t Ga2O3 over wide intervals, with scandium oxide resources totaling 38,250 tonnes, positioning Cummins Range as one of the largest scandium deposits in the western world.

These findings elevate Cummins Range beyond a rare earth deposit to a multi-commodity critical minerals project, with phosphate and niobium also present. The timing is notable given recent Chinese export controls on gallium and scandium, which have disrupted global supply chains and driven prices upward, underscoring the strategic value of RareX’s discoveries.

Advancing Heavy Rare Earths at Mt Mansbridge

RareX secured new tenements at the Mt Mansbridge Heavy Rare Earths Project, located near Northern Minerals’ Browns Range, one of the world’s premier heavy rare earth districts. Historical samples from Mt Mansbridge show yttrium concentrations up to 6%, a proxy for heavy rare earths, with drill results confirming hydrothermal xenotime mineralisation rich in dysprosium and terbium. The tenements’ grant clears the way for upcoming drilling campaigns, potentially unlocking further high-value rare earth resources.

Khaleesi Project and Piper Project Progress

At the Khaleesi Niobium Project, RareX finalized access agreements with neighboring Deep Yellow Limited subsidiaries, resolving tenure overlaps and enabling planned drilling programs. The project hosts a large alkaline intrusive complex with promising niobium and rare earth signatures. Meanwhile, the Piper Project in the Northern Territory, an 80% earn-in carbonatite target, remains poised for future drilling, with geophysical data indicating a strong magnetic anomaly consistent with niobium-rare earth-phosphate mineralisation.

Financial Position and Outlook

RareX reported cash outflows from operating and exploration activities totaling approximately A$669,000 for the quarter, with cash reserves of A$453,000 and available credit facilities. The company maintains strategic investments in Cosmos Exploration, Kincora Copper, and Canada Rare Earth Corp, valued collectively at over A$2 million. Discussions are underway with Global Emerging Markets for potential working capital facilities to support the Mrima Hill project.

RareX’s Managing Director, James Durrant, highlighted the company’s progress in building a diversified portfolio of critical mineral assets, emphasizing the strategic importance of developing primary sources outside China amid tightening export controls. The company’s multi-pronged approach across Australia and Kenya positions it well to capitalize on growing global demand for rare earths, gallium, scandium, and niobium.