US DFC Funds Harena Rare Earths in Madagascar
The US Development Finance Corporation commits $4.84 million to advance Harena Rare Earths' Ampasindava project, targeting critical mineral supply security.
The US International Development Finance Corporation has committed up to US$4.84 million to Harena Rare Earths to develop the Ampasindava project in Madagascar. This marks the DFC’s first mining investment in the country and integrates the London-listed firm’s operations into the agency’s strategic rare earths portfolio, joining existing assets like Serra Verde and Aclara.
The funding is designed to cover permitting, environmental and social studies, laboratory testing, and technical work. These activities are prerequisites for reaching a definitive feasibility study and a future construction decision, aiming to establish a reliable source of magnet metals and heavy rare earths for US and allied markets.
Specific Uses of Development Capital
The allocated capital will directly support the progression of the Ampasindava ionic clay rare earths project. Key expenditures include the development of a proof-of-concept pilot plant and the completion of necessary technical and environmental assessments. These steps are critical for validating the technical viability of the deposit and preparing the ground for a potential final investment decision.
Strategic Alignment With Supply Chains
Harena Rare Earths positions the project as a solution to shortages in magnet metals and heavy rare earths, materials essential for high-performance permanent magnets and defense systems. The DFC frames this investment as part of a broader strategy to strengthen critical mineral supply chains and support African economic development through mining sectors that enhance long-term competitiveness.
Potential For Future Financing
The DFC has retained the right to consider a larger financing or investment role as the project moves toward construction. This potential expansion is subject to successful due diligence and required regulatory approvals. Executive leadership at Harena described the current funding as a significant endorsement of the project’s viability and its contribution to mineral security for the US and its partners.
