Harena Rare Earths Plc (OTCQB:CRMNF), (LSE:HREE) is making important progress in advancing its Ampasindava rare earths project in Madagascar, with the formalisation of its exploitation permit and US development funding helping to move the project towards its next stage of development.
The milestone marks a significant step forward for the company, bringing together two of the key requirements for developing a strategically important rare earths asset: regulatory approval and access to funding. With the focus now turning towards on-site processing and pilot plant development, Harena Rare Earths is working to demonstrate the project’s technical potential and its ability to contribute to rare earth supply chains outside China.
Mining Permit Opens the Door to the Next Development Phase
The formalisation of the exploitation permit by the Madagascan government represents a major milestone for Harena Rare Earths. The permit provides the regulatory foundation for the company to progress its development plans, including the establishment of an on-site laboratory and pilot plant.
Speaking about the achievement, Executive Chairman Ivan Murphy highlighted the importance of the company’s progress within the ionic clay rare earths sector, where projects that have advanced through the development process are becoming increasingly significant.
Murphy noted that two Brazilian ionic clay rare earths projects, Serra Verde and Meteoric Resources, were acquired by larger mining groups during 2026, highlighting growing interest in the sector.
For Harena Rare Earths, securing the permit represents a transition towards the next stage of development: demonstrating that the processing techniques established through laboratory and smaller-scale testing can be successfully applied at the project site.
Permitting is a fundamental requirement for moving a mining project forward, and this achievement places Ampasindava in a stronger position to advance its technical development programme.
US Development Funding Supports Pilot Plant Plans
Alongside its permitting progress, Harena Rare Earths is benefiting from US$4.84 million in development funding from the US International Development Finance Corporation (DFC).
The funding, which the company has already begun drawing down, is intended to support the next phase of development alongside the company’s own equity funding.
This financial backing provides an important source of capital for the planned pilot plant and on-site laboratory, helping Harena Rare Earths progress the technical work required to demonstrate its proposed processing route.
The pilot programme will build on work already undertaken in laboratories and at smaller scale. Its purpose is to establish how the process performs under on-site conditions and to demonstrate the potential to produce a rare earth concentrate for the market.
By combining government-backed development funding with the formalised exploitation permit, Harena Rare Earths is addressing two major elements of its development strategy as it prepares to undertake this technical validation work.
The funding also provides a tangible link between the project’s development plans and the wider strategic interest in diversifying rare earth supply chains.
Building a Potential Source of Rare Earths Outside China
Rare earths are essential materials for a range of advanced technologies, including electric vehicles, renewable energy systems, electronics and defence applications. However, the concentration of supply and processing capacity in China has created a strategic incentive for Western governments and industry to support alternative sources.
Against this backdrop, Ampasindava has the potential to become part of the broader effort to diversify global rare earth supply chains.
Harena Rare Earths’ immediate priority is to demonstrate that its proposed processing route can deliver a rare earth concentrate from the project. Successfully progressing through this stage would provide an important technical foundation for subsequent development decisions.
The combination of the exploitation permit, DFC funding and planned pilot facilities gives the company a clearer framework for pursuing these objectives.
While the pilot phase remains a critical step in establishing the project’s technical credentials, the company has outlined a potential timeframe of approximately 20–24 months for delivering rare earth concentrate to the market, subject to successful development and testing.
A Key Period Ahead for Harena Rare Earths
For Harena Rare Earths, the focus is now firmly on execution. The company has secured its exploitation permit, begun drawing down US development funding and identified the pilot plant and on-site laboratory as key priorities.
These developments bring together the regulatory, financial and technical workstreams required to advance Ampasindava towards its next stage.
The pilot programme will be particularly important in demonstrating how the processing route performs on-site and whether the project can progress towards producing a marketable rare earth concentrate.
With rare earth supply diversification remaining a strategic priority, Ampasindava offers Harena Rare Earths an opportunity to advance a project in a sector attracting international attention.
The latest milestones provide a stronger platform from which the company can pursue that opportunity, with the coming phase of technical development set to be an important measure of its progress towards potential production.