Harena Rare Earths, a London-listed company developing the Ampasindava rare earths project in Madagascar, has received approximately €0.43 million from the US International Development Finance Corporation (DFC) under its existing development programme. The latest funding adds to an agreement totalling approximately €4.32 million. Harena has also requested a further drawdown of about €0.54 million, but receipt of that amount has not been confirmed.
DFC is separately considering potential financing of as much as €59.8 million for Ampasindava. The proposal remains subject to appraisal, due diligence and formal approval, and is not committed. Harena therefore has development funding flowing into the project, but does not have a fully committed financing package capable of supporting construction at commercial scale. If approved, the potential funding could materially change the project’s financing position.
Ampasindava is being developed as a potential source of magnet rare earths, including neodymium, praseodymium, dysprosium and terbium. These elements are used in permanent magnets for electric vehicles, wind turbines, advanced industrial equipment and defence systems. The project could be relevant to American and European efforts to diversify rare-earth supply away from China, while remaining in a transition stage between exploration, technical development and early pre-construction work.
Permit and supply chain
Harena formalised Ampasindava’s exploitation permit in October. The permit is an important regulatory milestone, but does not provide unconditional authorisation for full project development. Environmental approvals are still required before pilot infrastructure can proceed.
Future material from Ampasindava would need to undergo separation and refining before individual rare-earth oxides could be converted into metals and magnets. No binding European processing or industrial offtake agreement has been established for the project, leaving its eventual supply chain open.
Development funding and next steps
Government-backed development capital can fund drilling, metallurgy, engineering, environmental studies and other work that commercial lenders are often unwilling to support before a project reaches bankability. Harena’s development agreement provides funding at this stage, but does not amount to a construction financing commitment.
The move from several million euros of development funding to the tens of millions of euros required for construction remains a substantial financing challenge for Harena. The potential DFC package remains under consideration rather than available as committed construction funding. Ampasindava has government-backed development capital and an exploitation permit, but no complete construction financing package or binding European customer.
The next milestones are environmental approvals, further DFC disbursements and a decision on the larger funding proposal. Environmental clearance is required before pilot infrastructure can proceed.
