• Harena Rare Earths raised £2 million ($2.7 million) to advance its Ampasindava project and engage with the U.S. International Development Finance Corporation (DFC).

• The company initiated a formal process for potential U.S. financing of up to $5 million.

• A prefeasibility study estimates Ampasindava’s development cost at $142 million, targeting 71,000 tonnes of TREO over 20 years.

Harena Rare Earths, a London-listed mining company, announced on February 18, that it raised £2 million, or about $2.7 million, through a share subscription. The company said it will use the proceeds to advance development work at its Ampasindava rare earths project in Madagascar and to pursue financial support from the United States.

“The net proceeds of the Subscription will be used for the continued development work on the Ampasindava Project, engagement with the U.S. International Development Finance Corporation (DFC), and for general working capital purposes,” the company said in a statement.

In December 2025, Harena stated that it had initiated discussions with the DFC after holding meetings with senior officials from the U.S. federal agency. The company launched a formal process aimed at securing up to $5 million in U.S. financing for the development of Ampasindava. However, the company did not disclose the specific terms of any potential investment, and it remains unclear whether negotiations include a broader financing structure to support the future construction phase of the mine.

A prefeasibility study published in late January 2026 estimates the development cost of the Ampasindava mine at $142 million. The project targets the production of 71,000 tonnes of total rare earth oxides (TREO) over a 20-year mine life.

While the U.S. position on the project remains to be clarified, Harena’s approach aligns with a broader strategic agenda. Washington is seeking to reduce dependence on Chinese supplies of critical minerals, including rare earths, which are essential for manufacturing technologies such as wind turbines.

The DFC has already supported several rare earth projects in Africa, including the planned Longonjo mine in Angola and the Phalaborwa project in South Africa. The coming months will likely determine the scope and structure of any U.S. contribution to Ampasindava.

Beyond Ampasindava, Madagascar also hosts Vara Mada, a monazite project developed by U.S.-based Energy Fuels.

This article was initially published in French by Aurel Sèdjro Houenou

Adapted in English by Ange J.A de Berry Quenum