Harena Resources well positioned, as China imposes new export controls on rare earths

Harena Resources PLC () looks set to be a significant beneficiary of the recent announcement from China that it will impose new export controls on rare earth elements, including the magnet metals dysprosium and terbium.

Harena owns 75% of the Ampasindava rare earths project in Madagascar.

Dysprosium and terbium, along with neodymium and praseodymium (Pr), are vital for the manufacture of NdFeB (Neodymium-Iron-Boron) permanent magnets, which are essential for defence applications including fighter jets, precision-guided missile systems, military radar, and advanced weapons platforms. 

They also play a key role in the manufacture of wind turbines, robotics, computing, electric vehicles and renewable energy technologies.

Harena’s Ampasindava project hosts a JORC-compliant large scale 698 million tonne resource, containing a significant concentration of these high-demand magnet metals. 

The ionic clay nature of the deposit offers the potential for lower-cost, lower-impact extraction, providing an alternative to China’s dominance in processing and refining.

The company has already signed a non-binding offtake term sheet with United Rare Earths Inc., a US-based group developing a Rare Earths Centre of Excellence in Tennessee, supporting US domestic supply chains for defence and energy markets.

China’s tightening of export controls underlines the growing urgency for secure, independent supply chains for the West, as highlighted in a recent Reuters report.

Harena is advancing feasibility work as well as environmental and social impact assessment work at Ampasindava. 

"China’s move to restrict exports of critical rare earths has made the need for diversified, geopolitically neutral supply chains even more pressing,” said Joe Belladonna, managing director of Harena Resources. 

“Ampasindava is well-positioned to be part of the solution, offering a large-scale ionic clay rare earth resource of magnet metals essential for global defence, energy, and technology markets. We are focused on progressing development and building meaningful commercial partnerships."

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All of a sudden, Harena’s positioning looks excellent. It may be a long way from the US geographically-speaking, but the deposit is on the coast of Madagascar, so product can be loaded easily and shipped directly, without passing through any intermediate jurisdictions. No Chinese influence will be felt, and the US can benefit from a direct and secure supply of rare earths.