- Madagascar rare earth development rests on two Western-backed projects: Harena Rare Earths’ Ampasindava ionic clay deposit in the north-west and Energy Fuels’ Vara Mada mineral sands project in the south-west.
- Ampasindava hosts approx 606,000t TREO in a resource of approx 700Mt. Its January 2026 PFS outlines approx 4,000 tpa TREO over a 20-year mine life for US$142m pre-production capex.
- Vara Mada’s January 2026 updated feasibility study models 24,000t of monazite a year alongside ilmenite, zircon and rutile, with a post-tax NPV10 of US$1.8bn.
- Neither project has a construction decision. Ampasindava is waiting on its exploitation permit, and Vara Mada needs an investment agreement approved by the High Constitutional Court and Parliament before FID.
- The US International Development Finance Corporation (DFC) signed a development funding agreement of up to US$4.84m for Ampasindava in July 2026, its first mining investment in Madagascar.
- A transitional military government has held power since October 2025. In late January 2026 it lifted a moratorium on new mining permits that had been in place since 2010.
Madagascar rare earth supply is still a pipeline, not a production figure. The country has two advanced projects backed by US capital: a magnet-focused ionic adsorption clay deposit on the Ampasindava Peninsula and a monazite by-product stream from the Ranobe heavy mineral sands deposit near Toliara. Both sit alongside the continent’s other development-stage assets covered in our Africa rare earth guide.
The geology and the financing interest are further along than the legal framework. Each project depends on a decision from a government that took power outside the constitutional process in October 2025, and neither has a confirmed start date for construction.
Madagascar Rare Earth Context: Mining Policy and Politics
Colonel Michael Randrianirina assumed the presidency in October 2025 after Andry Rajoelina left the country. The African Union suspended Madagascar following the military takeover.
In late January 2026 the transitional government lifted a moratorium on new mining permits that had been in place since 2010. Rare earths and mineral sands are among the categories reopened. Gold permits remain frozen.
Madagascar already has an established mining sector. It is a significant graphite producer and hosts the Ambatovy nickel-cobalt operation. Rare earths would add a new commodity to that base, but only once permits and fiscal terms are settled for each project.
Ampasindava: Madagascar’s Ionic Clay Rare Earth Project
Harena Rare Earths plc (LSE: HREE, OTCQB: CRMNF) owns 100% of Ampasindava, in the Diana Region of north-west Madagascar. The deposit is an ion adsorption clay, the same style of mineralisation that underpins much of southern China’s heavy rare earth supply. The resource stands at approx 700Mt containing approx 606,000t TREO.
The project targets the four magnet rare earths: neodymium, praseodymium, dysprosium and terbium. Dysprosium and terbium are the scarcer elements in that group, a distinction set out in our heavy vs light rare earths explainer. The planned flowsheet uses heap leaching to produce a mixed rare earth carbonate for refining outside Madagascar.
Pre-Feasibility Study Economics
Harena published its PFS in January 2026, with technical support from SGS and an updated JORC 2012 Mineral Resource Estimate. The study models a 20-year mine life with dry plant throughput of 5 Mtpa at an average grade of 1,500 ppm TREO.
Annual output is approx 4,000 tpa TREO, with magnet rare earth oxides making up 41% of the total. Life-of-mine production is approx 71kt TREO. Pre-production capex is US$142m. Under the analyst price base case, post-tax NPV10 is US$249.6m and IRR is 30%.
DFC Funding and Permitting Status
Harena signed a Project Development Funding Agreement with the DFC in July 2026 for up to US$4.84m toward the agreed development budget. The first tranche drawdown is under way. The DFC announced the financing on 7 August 2026 as its first mining investment in Madagascar.
The money funds permitting work, environmental and social studies, and a proof-of-concept pilot plant. The DFC also holds rights to be considered for future financing, but no further amount has been agreed. It is development capital, not a construction package.
The agency already has exposure to rare earth supply outside China, including Brazil’s Serra Verde ionic clay operation. Ampasindava is a much earlier-stage position by comparison.
Harena has agreed mining terms with the government, but the exploitation permit has not yet been granted as of the company’s latest update. The company targets production by mid-2028 and is evaluating processing options in the US and Europe. That target depends on the permit being issued.
Vara Mada: Monazite from Madagascar Mineral Sands
Energy Fuels (NYSE: UUUU, TSX: EFR) owns 100% of Vara Mada through Base Toliara, acquired with Base Resources in October 2024. The project, formerly known as Toliara, is based on the Ranobe heavy mineral sands deposit 45 km north of the city of Toliara in south-west Madagascar.
The government had suspended the project in November 2019 and lifted the suspension on 28 November 2024. A memorandum of understanding on fiscal terms followed in December 2024, setting a 5% royalty on mining products. Energy Fuels renamed the project Vara Mada with its updated feasibility study in January 2026.
Updated Feasibility Study
The Energy Fuels updated feasibility study reports a Mineral Resource of 2,580Mt at 4.3% heavy mineral and Ore Reserves of 904Mt at 6.1% heavy mineral. The modelled mine life is 38 years.
Average annual output is 959,000t of ilmenite, 66,000t of zircon, 8,000t of rutile and 24,000t of monazite. Ilmenite dominates the tonnage. Monazite is the rare earth component.
Energy Fuels intends to process that monazite at the White Mesa Mill in Utah, which would give Vara Mada monazite a processing route in the US.
Capex is staged: US$121m pre-FID, US$769m for Stage 1 at 13 Mtpa, and US$142m for Stage 2 at 25 Mtpa. The study gives a post-tax NPV10 of US$1.8bn and an IRR of 24.9%.
Path to a Final Investment Decision
Energy Fuels has not taken FID. Two conditions stand in the way: an investment and stability agreement with the state, and the addition of monazite to the existing mining permit. The agreement must be approved by the High Constitutional Court and Parliament.
Energy Fuels says negotiations slowed after the change of government. On its Q2 2026 call the company described the timing as near term, without giving a date.
Madagascar Rare Earth Projects Compared
The table below sets the two Madagascar rare earth projects side by side. They differ in deposit type, scale, product and the approvals still outstanding.
| Madagascar rare earth projects | Ampasindava | Vara Mada |
|---|---|---|
| Operator / ticker | Harena Rare Earths plc (LSE: HREE, OTCQB: CRMNF), 100% | Energy Fuels (NYSE: UUUU, TSX: EFR), 100% via Base Toliara |
| Deposit type | Ionic adsorption clay, heap leach | Heavy mineral sands (Ranobe) |
| Resource | Approx 700Mt, approx 606,000t TREO | 2,580Mt at 4.3% HM (Reserves 904Mt at 6.1% HM) |
| Key REE output | Approx 4,000 tpa TREO in mixed carbonate, 41% magnet REO | 24,000 tpa monazite, for White Mesa Mill |
| Capex | US$142m pre-production | US$121m pre-FID, US$769m Stage 1, US$142m Stage 2 |
| Economics | Post-tax NPV10 US$249.6m, IRR 30% (PFS, analyst base case) | Post-tax NPV10 US$1.8bn, IRR 24.9% (updated FS) |
| Current status | Mining terms agreed; exploitation permit pending; DFC development funding in drawdown | No FID; investment agreement and monazite permit amendment outstanding |
Permitting Risk for Madagascar Rare Earth Development
Both Madagascar rare earth projects are gated by the same authority. Ampasindava needs a permit decision; Vara Mada needs a negotiated agreement ratified by two state institutions. The lifting of the permit moratorium in January 2026 removed a formal barrier for new applications, but it does not settle project-level fiscal terms.
For investors tracking Madagascar rare earth exposure, the practical question is timing rather than resource quality. The PFS and feasibility figures above are published and specific. Neither company has disclosed a date for the approvals that sit between those studies and construction.
Environmental and Social Issues in Madagascar Rare Earth Projects
Vara Mada was suspended for five years amid community opposition. Energy Fuels says it has since refocused on transparency.
The Ampasindava Peninsula is a high-biodiversity area, and the concession changed hands several times over the years without reaching construction. Heap leaching of ionic clays uses reagents such as ammonium sulphate, which places groundwater management under scrutiny for any project of this type.
Madagascar Rare Earth in the African Supply Picture
Ampasindava is one of few ionic clay projects in Africa. The closest comparison is Makuutu in Uganda, developed by Ionic Rare Earths, which also targets a heavy rare earth-weighted product from clay-hosted mineralisation.
Vara Mada fits a different model: rare earths recovered as a by-product of a large titanium and zircon mine, with the monazite shipped to a US processor. For the continent’s other development-stage deposits, see our ranking of Africa rare earth projects.
Madagascar rare earth output depends on two government decisions: an exploitation permit for Ampasindava and a ratified investment agreement for Vara Mada. Until those are in place, the country’s rare earth figures remain study outputs.
What are the main Madagascar rare earth projects?
There are two. Ampasindava is an ionic adsorption clay project in north-west Madagascar owned by Harena Rare Earths plc. Vara Mada is a heavy mineral sands project near Toliara in the south-west owned by Energy Fuels, which will produce monazite as a by-product of ilmenite, zircon and rutile mining.
Is Madagascar producing rare earths?
Madagascar does not currently have commercial rare earth production. Both main projects are in development and waiting on government approvals. The article body tracks the current permitting and financing status of each.
What type of rare earth deposits does Madagascar have?
Madagascar has two contrasting deposit styles. Ampasindava is an ionic adsorption clay deposit, similar in type to those in southern China, with a magnet rare earth focus. Vara Mada is a heavy mineral sands deposit in which rare earths occur in monazite.
Who is backing Madagascar rare earth development?
The US International Development Finance Corporation (DFC) is funding early development work at Ampasindava, covering permitting, studies and a pilot plant. Energy Fuels, a US-listed company, owns Vara Mada and plans to process its monazite at the White Mesa Mill in Utah.
What are the main risks for Madagascar rare earth projects?
The main risks are permitting and fiscal terms under a transitional government, the need for parliamentary and court approval of investment agreements, and environmental and community concerns. These include biodiversity on the Ampasindava Peninsula and past opposition at the Toliara mineral sands project.
