The U.S. International Development Finance Corporation (DFC) announced on 7 August 2026 that it will provide project development funding for the Harena Rare Earths plc (LSE: HREE, OTCQB: CRMNF) rare earth mine in Madagascar. The funding, announced during the American Mining Industry event held at the United States Department of State, marks DFC's first mining investment in Madagascar, advances the development of a strategically important source of rare earth elements essential to United States advanced manufacturing, and builds on DFC's strategic portfolio of rare earths assets, including Serra Verra and Aclara, that aim to secure United States and allied partners' supply chains.
DFC Chief Executive Ben Black said: "President Trump is looking out for the American people and has made securing our critical mineral supply chains a national priority. Through projects like Harena, DFC is helping expand America's access to these essential materials and providing our partners transparent, high-quality financing alternatives. DFC is proud to support investments that strengthen U.S. economic security and create lasting economic opportunity for both the United States and Madagascar."
Harena Resources Executive Chairman Ivan Murphy said: "This investment by the U.S. government through the DFC is a huge endorsement of the quality of our ionic clay rare earth project in Madagascar. We are deeply grateful to Ben Black and Conor Coleman for their leadership of DFC, as well as to the teams with whom we have had the pleasure of working with. We are honoured to be playing our part to alleviate the chronic shortage of magnet metal and heavy rare earths and to increase mineral security for the United States and its partners."
Rare earth elements are critical to the technologies that support advanced manufacturing and United States national security, including high-performance permanent magnets and precision-guided defence systems. DFC said its project development funding helps turn promising ventures into investment-ready projects that are profitable for the American taxpayer and United States businesses and help diversify and secure critical United States supply chains.
DFC's strategy in Africa prioritises investments in vital sectors, including mining, that enable African nations to unlock their vast economic potential while strengthening America's strategic partnerships, supply chain resilience and long-term economic competitiveness. Harena Resources describes itself as a rare earths development company focused on the Ampasindava Ionic Clay Rare Earth Project in Madagascar, in which its interest is 100%. The company says the project hosts one of the largest ionic clay rare earth deposits outside China, with significant concentrations of high-value magnet metals, specifically heavy rare earths, including neodymium (Nd), dysprosium (Dy) and praseodymium (Pr), which are critical to the composition of neodymium magnets (NdFeB). Harena says it is committed to low-impact, high recovery mining, providing a sustainable supply of critical minerals for technology and military defence industries as well as meeting the ever-growing demand for NdFeB from the robotics sector.
Editor’s Note: Although this is not specifically railway-related, it is worth noting as Madagascar advances both transport corridor development and railway infrastructure. Premium subscribers can access the latest procurement opportunities, together with details of the country’s transport improvement plans, in our latest country update.
