ANTANANARIVO, Madagascar — Madagascar’s mining industry is gaining fresh international business attention as investors look toward the country’s rare-earth and critical-minerals potential.

The United States has backed the Ampasindava rare-earth project, with the U.S. International Development Finance Corporation providing project-development support. The move represents the DFC’s first mining investment in Madagascar and is aimed at advancing development of the deposit.

The project is particularly significant because rare-earth elements are increasingly important for technology, energy and advanced manufacturing supply chains. Washington is seeking alternative sources of critical minerals as global competition over supplies intensifies.

Madagascar reopened most new mining permits in January after a 16-year suspension, creating a potentially more favourable environment for mining investment while gold permits remain restricted.

The growing interest in rare earths could bring new investment, technical expertise and employment opportunities to Madagascar, while increasing the country's importance in global critical-mineral supply chains.

The development also comes as Madagascar looks to attract investment across mining, energy, manufacturing and other export-oriented sectors.