Madagascar's Ministry of Mines has formalised the exploitation permit for Harena Rare Earths' Ampasindava project. The LSE-listed company now needs an environmental permit and approval of its environmental and social plans before construction, and is aiming for production in 2028.
At a glance
- A pilot phase with a demonstration plant comes first.
- It is supported by a $4.84 million funding agreement with the US International Development Finance Corporation (DFC).
- Harena says Madagascar could join the small group of countries that produce and process rare earths.
Background
Rare earths such as neodymium and praseodymium are used in the permanent magnets inside electric vehicle motors and wind turbines. China dominates their mining and processing, so Western governments are funding new sources elsewhere. An exploitation permit is the licence to mine, as opposed to explore.
What happened
Madagascar's Ministry of Mines has formalised the exploitation permit for Harena Rare Earths' Ampasindava project, Mining Weekly reported on October 12. The company is now focusing on getting an environmental permit and approval of its environmental and social plans so it can start construction.
"The formalisation of the exploitation permit represents a major milestone for Harena and the Ampasindava project," executive chairperson Ivan Murphy said.
The pilot phase
The next stage is a pilot phase, supported by Harena's $4.84 million project development funding agreement with the US International Development Finance Corporation. It includes building and running a demonstration plant and an initial operation to test the project's technical, economic, environmental and social parameters.
Murphy said the pilot will generate technical data to refine Ampasindava's development "as we work towards bringing the project into production in 2028".
What it means
Murphy said Madagascar's entry into the select group of countries that produce and process rare earths would support the country's new industrial policy, through jobs and training a skilled local workforce. US funding for the pilot reflects Washington's push for rare earth supplies outside China.
Our read
Outlook: neutral. Ampasindava is years from production, so it does not affect rare earth supply or prices today.
What to watch
- Madagascar's decision on the environmental permit.
- Construction and results of the demonstration plant.
- Whether the 2028 production target holds.
For information only, not investment advice.
Neodymium price in India
metalscost.com India reference price as of 2026-10-16.
Detailed analysis
Timeline
- 2026-10-12: Madagascar's Ministry of Mines formalises the Ampasindava exploitation permit.
- 2028: Harena's target for bringing the project into production.
Supply Drivers
Ampasindava could add rare earth supply outside China from 2028 if permitting and the pilot succeed.
Government Policies
Madagascar formalised the mining permit, and the US DFC is funding the pilot phase.
What could lift prices
- The mining permit removes a major hurdle for the project.
- US government funding supports the pilot phase.
What could weigh on prices
- An environmental permit is still needed before construction.
- Production is not targeted until 2028.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Madagascar | Medium | It could join the countries that produce and process rare earths. |
| United States | Low | Its DFC is funding the pilot phase. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Critical Minerals Mining | Positive | A new rare earths project outside China moves towards production. |
Who gains, who loses
- Harena Rare Earths: It now holds a formal mining permit for Ampasindava.
Other ways this could play out
- If the environmental permit comes through, Harena can start construction of the pilot plant.
- If permitting stalls, the 2028 target could slip.
Price risks
- Rare earth prices are heavily influenced by Chinese supply and export policy.
- Environmental and social approvals remain outstanding.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
United States