

Gujarat Mineral Development Corporation Ltd (GMDC) shares went up by 4 per cent on Friday. This happened after India officially joined the Pax-Silica Coalition with the United States, focusing mainly on important supply chains and critical minerals. GMDC is a government-owned mining company, and it may benefit from this new alliance. The stocks increased by 4.4 per cent and reached INR 585.15 (USD 6.45) on BSE.
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In the 2025 budget speech, Finance Minister Nirmala Sitharaman announced a scheme for rare earth permanent magnets and stated mineral-rich states like Odisha, Kerala, Andhra Pradesh, and Tamil Nadu will be supported to create special rare earth corridors. The government also plans to expand the rare earth scheme to promote mining, processing, research, and manufacturing.
Although GMDC plans to invest in the rare earth elements, the revenue is expected only after FY 2030. On February 16, Nuvama Institutional Equities, India’s top-tier brokerage house, gave a “Reduce” rating to the stock with a target price of INR 231 (USD 2.55). Their prediction is about the benefits from lignite, coal, and power in its estimates, but not rare earth.
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The company works on Lignite, Bauxite, Fluorspar, Manganese and power projects. Among these, lignite mining is their main business. The five major mining fields, where they work, are in Mata-No-Madh, Tadkeshwar, Rajpardi, Bhavnagar and Umarsar.
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GMDC runs a 250 MW thermal power plant in Akrimota and a wind and solar power plant with a capacity of 200.5 MW and 5 MW, respectively, in Gujarat. The company also runs bauxite mining at its Mewasa mines in Devbhoomi Dwarka. During lignite mining, they get some secondary minerals from the overburden (extra soil and rock removed during mining). GMDC plans to sell these additional minerals in the market to earn additional revenue.
*Image source: pixelz.cc
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