Madagascar Rare Earth Project Receives Mining Permit, Targets Production in 2028

en.Wedoany.com Reported - On October 12, UK-based Harena Rare Earths announced that Madagascar's mining authorities have formally confirmed the mining license for the Ampasindava rare earth project. The project had previously completed the signing of mining development terms, with a pre-feasibility study estimating pre-production capital expenditure of approximately US$142 million and planned annual production of about 4,000 tonnes of rare earth oxides. The company plans to commence construction of a pilot facility after obtaining environmental permits, with the goal of achieving production by 2028.

On August 11, Harena announced the signing of mining development terms with the Madagascar government, specifying the social, environmental, technical and financial responsibilities involved in project development. Following the formal confirmation of the mining license, the company will continue to advance the Environmental and Social Impact Assessment (ESIA), public consultation and Environmental and Social Management Plan (ESMP), with the relevant procedures required to comply with Madagascar's MECIE environmental investment regulatory framework. Approval of the environmental permit and management plan remains a precondition for construction of the pilot facility.

The pilot phase of the project plans to construct and operate a rare earth demonstration plant, while conducting initial mining and processing operations to verify ore processing techniques, equipment performance, cost structure, environmental management and product quality. The relevant test data will be used to refine the project's Definitive Feasibility Study (DFS) and determine the subsequent commercial-scale development plan.

The pilot phase is intended to be funded by a US$4.84 million project development financing agreement signed between Harena and the United States International Development Finance Corporation (DFC). The agreement, announced in July of this year, covers portions of the established development budget, including permit applications, environmental and social studies, and demonstration facility development. Further technical and investment decisions must still be completed before the project enters the full commercial construction phase.

Ampasindava is located in northwestern Madagascar and is an ion-adsorption type rare earth project. The company's previously announced resource estimate is approximately 699 million tonnes, containing approximately 606,000 tonnes of rare earth oxides. The pre-feasibility study completed in January 2026 adopts a scheme of processing 5 million tonnes of dry ore per year, with a planned mine operating life of 20 years and estimated cumulative production of approximately 71,000 tonnes of rare earth oxides, of which cumulative production of neodymium, praseodymium, dysprosium and terbium-related oxides is approximately 29,700 tonnes.