On July 22, 2026, Harena Rare Earths and the US Development Finance Corporation (DFC) formalized a $4.84 million agreement for the Ampasindava mining project in northwestern Madagascar. Washington is now directly engaged in the global rare earth battle.
A Strategic Development Agreement
The Project Development Funding Agreement (PDFA) between Harena Rare Earths and the DFC — the US government's international investment arm — covers the project's first critical phase: obtaining the exploitation permit, conducting environmental studies, and building a proof-of-concept pilot plant. Initial funds have already been drawn down.
Beyond the initial $4.84 million, the DFC has retained options for « a further, more substantial, financing or investment role » as the project advances toward construction, notes Harena CEO Andrew Murphy. The exploitation permit is expected « within the coming weeks ».
A $142 Million Project Over 20 Years
The Ampasindava project's scope is significant. The 2026 prefeasibility study outlines:
- Annual production of 71,000 tonnes of total rare earth oxides (TREO)
- Total investment of $142 million
- An operational lifespan of 20 years
- Development work beginning in 2027, with production from mid-2028
Ampasindava taps ionic clay deposits — a type of formation particularly suited to extracting light and medium rare earths used in permanent magnets for electric vehicles and wind turbines.
Washington vs. Beijing on Malagasy Soil
The DFC's commitment fits within a broader US strategy: diversifying critical mineral supplies away from Chinese-dominated sources. China currently controls over 70% of global rare earth production and more than 90% of refining capacity worldwide.
« This partnership positions the project within America's critical minerals strategy, providing a geopolitically aligned alternative to Asian sources, » stated Harena chairperson Ivan Murphy at the July 22 signing. Madagascar joins a select group of African nations — alongside Malawi (Kangankunde) and Angola (Longonjo) — entering the Western critical mineral supply chain.
Africa's Mining Agenda in Full Acceleration
The signing comes just weeks before African Mining Week 2026, reinforcing its political signal. The DFC is seeking to multiply its African commitments — with Ampasindava presented as a flagship example of its « critical minerals in Africa » strategy.
Why It Matters
Rare earths are not simply commodities — they sit at the heart of the global energy transition. For Madagascar, Ampasindava represents an opportunity to move up the global industrial value chain, provided that the environmental and social challenges of a large-scale project are properly managed. The still-pending exploitation permit remains the key lock to open before any construction can begin.
Sources: Mining Weekly (July 22, 2026), Agence Ecofin (July 29, 2026), DFC press release, Energy Capital & Power (September 2026).