INTERVIEW: Harena Rare Earths CEO eyes 2028 production start after US funding commitment

Harena Rare Earths expects to deliver rare earth concentrate from its wholly owned Ampasindava ionic clay project in Madagascar by mid-2028, after securing US government-backed development funding, CEO Ivan Murphy told Platts, part of S&P Global Energy.

The London-listed company said July 22 that the US International Development Finance Corp. had agreed to commit up to $4.84 million to support the development of Ampasindava.

In an interview with Platts, Murphy said the funding agreement followed around 9 months of engagement with the DFC and would support specific project development work, including environmental and social studies, a pilot plant, and an on-site laboratory.

"It's a very prescribed process, which is brilliant for us," Murphy said. "It means they've done an awful lot of work on the environmental and social aspects of our project, our pilot plant, our on-site lab."

Murphy said the due diligence undertaken as part of the DFC process will help support Harena's next financing phase, with the company targeting a larger funding package in the first quarter of next year.

"For us, it's about $150 million to get into production," Murphy said. "We've now got a clear vision on where that can come from."

Concentrate-only model

Ampasindava is an ionic clay rare-earth project, a deposit type Murphy said offers a simpler development pathway than hard-rock rare-earth mines.

"What they are is massive excavation projects."

Murphy said Harena plans to excavate the top 8-10 meters of clay, place the material on large, lined pads, and treat it using washes including ammonium sulfate, seawater, and saltwater. He added that the project's coastal location in northern Madagascar, supported by key enabling infrastructure including semi-industrial ports and an international airport, provides a significant logistical advantage.

Harena does not plan to enter refining, separation, recycling or magnet manufacturing.

"Our whole business model is focused on producing concentrate," Murphy said. "We are never refining. We're not equipped for that. What we can do is deliver a concentrate and sell that."

Murphy said the company expects to benefit from increasing Western investment in rare earth refining capacity over the next two years. Harena's progress comes as developed economies seek to reduce their reliance on China in critical minerals supply chains.

"What we're going to do is deliver a concentrate in two years, at which time, given the weight of money across the US and other Western countries outside of China, there'll be a lot more refining available than there is now," he said.

Magnet rare earth focus

Harena's planned concentrate is expected to be heavily weighted toward magnetic rare earth elements, including neodymium-praseodymium and dysprosium-terbium, considered essential for the manufacture of permanent magnets used in EVs, wind turbines, and defense technologies.

Murphy said 83% of the value of Harena's concentrate would comprise magnet rare earth elements. In January, the company released a project prefeasibility study outlining a 20-year heap-leach operation targeting production of about 71,000 mt of total rare earth oxides over the life of the project. The study estimates an annual output of 4,000 mt of TREO, including 1,700 mt of magnetic rare earth oxides.

Murphy said Harena has received strong interest in its concentrate, although no offtake agreements have been signed to date. He added that future commercial arrangements are likely to come from within a network of US-aligned investors, traders, refiners, and critical minerals companies linked to the DFC and the broader US government initiatives.

US backing

Murphy described the DFC agreement as a major endorsement of both Ampasindava and Madagascar as a mining jurisdiction.

"This first step with the US is putting us right inside the circle of trust in the US critical mineral space," he said, adding that the US is increasingly active in Madagascar, citing DFC-backed infrastructure activity and investment by US-listed Energy Fuels.

"The new administration in Madagascar and the current administration in the US are the single greatest things that have happened to this project," Murphy said.

He contrasted US support for critical minerals projects with what he described as slower-moving European and UK policy efforts. "It's night and day," Murphy said.

"I just think in this case, it's a lack of commerciality and a disconnect from the reality of just how important these critical minerals are."

China, demand outlook

Murphy said he expects China to continue prioritizing its own rare earth requirements, particularly for artificial intelligence, defense, and other advanced technologies.

"They want everything they're making to develop their AI, their defense, their key high-end technologies," Murphy said.

He said the US government and the DFC are right to focus on alternative rare earth supply chains rather than on increasing Chinese exports.

"I think the focus — and what the US government and the DFC have been really good at — is just focusing on alternative solutions," Murphy said.

Beyond electric vehicles and wind turbines, Murphy said demand from robotics, drones, AI, and defense applications will become increasingly important for rare earth markets.

"What we don't talk about enough is robotics," Murphy said. "This is bubbling away behind the scenes and is coming faster and faster."

Harena expects to provide a permitting update in Madagascar in the coming weeks, followed by an operational update covering recent site work, sampling, and further concentrate production. Murphy said the company is also assessing higher-mineralized areas as it advances toward a financing package and production decision.

Platts, part of S&P Global Energy, assessed dysprosium oxide at $2,300/kg CIF North America on July 31, up $200/kg month over month. Platts assessed terbium oxide at $4,900/kg CIF North America in July, up from $4,800/kg in June.