Industry News

U.S. DFC Backs Harena Rare Earths with First Mining Investment in Madagascar

August 12, 2026 Margaret Calloway 3 min read

Details of the DFC Funding Initiative

The announcement was made during an American Mining Industry event hosted at the U.S. Department of State in Washington, D.C. The DFC’s funding initiative is set to cover critical early-stage project activities, including permitting, environmental and social impact studies, as well as the establishment of a proof-of-concept pilot plant. These steps are essential for Harena to advance towards a definitive feasibility study and ultimately a construction decision.

Harena Rare Earths, which trades on the London Stock Exchange under the ticker LSE: HREE and on the OTCQB under CRMNF, has stated that the DFC’s commitment involves funding of up to $4.84 million. While this amount represents a small portion of the project’s estimated $150 million value, it is a crucial development that underscores the project’s potential importance to the U.S. rare earth supply chain.

Strategic Importance and Market Context

The Ampasindava project is wholly owned by Harena and is strategically positioned to contribute to the diversification of rare earth element sources outside of China, which currently dominates global supply. Rare earth elements are critical in the manufacturing of various high-tech products, including electric vehicles, wind turbines, and advanced military systems. The DFC’s involvement highlights the U.S. government’s push to secure these vital resources amidst growing geopolitical tensions and supply chain disruptions.

According to Harena’s pre-feasibility study conducted earlier this year, the Ampasindava project is projected to produce approximately 4,000 tonnes of total rare-earth oxides annually, including 1,700 tonnes of magnet rare earths. This output is expected to contribute significantly to the global supply, with production anticipated to commence by mid-2028. However, the pre-feasibility study also estimated pre-production capital needs at around $142 million, indicating that further investment will be necessary to bring the project to fruition.

Potential for Future Development and Investment

The DFC has signaled a potential interest in expanding its involvement as the project progresses. This larger future financing or investment role could be pivotal in closing the funding gap required for the project’s development and construction phases. Such support would align with DFC’s strategic portfolio, which already includes rare earth assets like Serra Verra and Aclara, further reinforcing the U.S.’s commitment to establishing a more resilient rare earth supply chain.

For Harena, securing this initial funding from a reputable U.S. agency not only provides financial support but also enhances the project’s credibility and attractiveness to other potential investors. The company’s ability to leverage this backing could play a crucial role in attracting the additional capital needed for full project execution.

As the rare earth market continues to evolve, the Ampasindava project stands as a testament to the growing emphasis on diversified sourcing and the importance of strategic partnerships in the mining sector. With the U.S. government’s proactive stance on securing essential minerals, Harena’s progress could set a precedent for similar initiatives in regions with untapped rare earth potential.

Looking ahead, industry observers will be keenly watching the developments at Ampasindava, as well as any further announcements from the DFC regarding its investment portfolio. The coming months will be crucial for Harena as it navigates the path from feasibility to full-scale production, potentially reshaping the landscape of the global rare earths market.

Editorial Note: This article is an independent analysis based on publicly available information and press releases. MineListings.com is not affiliated with the companies mentioned. The views expressed are those of our editorial team and do not represent the official position of any company discussed. For the most accurate and complete information, readers should refer to the original source materials and company filings.