ANTANANARIVO, July 29 – The United States is backing a rare earth mining project in Madagascar as part of its efforts to reduce dependence on supply chains largely controlled by China.
The project, located in Ampasindava, forms part of Washington’s wider plan to encourage investment in Africa’s critical minerals sector. According to the U.S. State Department said the goal is to increase American involvement in mining sectors that have long been dominated by rival countries.
Meanwhile, London-listed Harena Rare Earths said the U.S. International Development Finance Corporation (DFC) has committed up to $4.48 million for pilot plant work, laboratory testing and environmental programmes. The company said the funding could help attract additional financial support as the project progresses.
The investment comes as China continues to dominate global rare earth mining and processing. These minerals are used in electric vehicles, wind turbines, electronics and defence equipment.
Harena said the Ampasindava deposit contains valuable rare earth elements, including neodymium, praseodymium, dysprosium and terbium. The company expects the mine to produce about 4,000 metric tonnes of rare earth oxides each year, including around 1,700 tonnes of high-value magnet materials.
In addition, Harena Executive Chair Andrew Murphy said the company is seeking an exploitation permit and hopes to receive approval within the next few weeks. Madagascar’s Mines Ministry did not immediately respond to requests for comment.
The company plans to begin production by mid-2028 and is assessing processing options in the United States and Europe. Murphy identified MP Materials, USA Rare Earths and Solvay as possible refining partners.
Although the DFC’s current commitment is relatively modest, Murphy said it could pave the way for further U.S. support as the $150 million project moves closer to construction. A DFC official also said the agency may consider additional backing, subject to due diligence and the necessary approvals.
