GMDC, Deccan Gold Share Price: Mining Stocks Rally Up To 20% On India-US Rare Earth Framework

GMDC, Deccan Gold Mines Share Price: Shares of mining companies surged up to 18 per cent after India and the US signed a strategic agreement on critical minerals and rare earths on May 26. The pact aims to reduce dependence on China for key resources used in semiconductors, electric vehicles, clean energy, and defence technologies amid rising global concerns over China’s dominance in rare earth supplies.

Shares of Deccan Gold Mines, which started mining critical minerals in December 2025, were locked in at 20 per cent upper circuit at Rs 177.60 per share. Shares of Gujarat Mineral Development Corporation (GMDC), a state-run miner that has established a dedicated critical minerals division, also surged 5.80 per cent to Rs 693.10 apiece.

Shares of Bharat Coking Coal Ltd (BCCL), a subsidiary of Coal India, surged 5.5 per cent to Rs 38 apiece. The Miniratna PSU had raised Rs 1,069 crore funds through its initial public offering (IPO) this year in January.

Coal India has already secured preferred bidder status for several critical mineral blocks, including a graphite block in Madhya Pradesh. The company has also partnered with state-run Indian Rare Earths Ltd to secure an exploration license for rare earth elements in Andhra Pradesh and jointly develop rare earth and beach sand mineral assets.

Vedanta shares rose 3.73 per cent, and its subsidiary Hindustan Zinc gained about 2 per cent. The billionaire Anil Agarwal-led company and its subsidiary has also secured multiple auctioned critical mineral blocks across India.

India-US Rare Earth Framework: All You Need To Know

India and the US signed the critical minerals and rare earths framework during the Quad Foreign Ministers’ meeting in New Delhi in the presence of External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio.

The Quad grouping includes India, United States, Japan, and Australia, all of which are seeking to diversify supply chains in strategic sectors.

Announcing the agreement, Jaishankar said the bilateral India-US framework on securing supplies of mining and processing of critical minerals and rare earths is something "very timely and critical."

He said the framework aims to deepen cooperation across the entire critical minerals and rare earths supply chain, including mining, processing, recycling, and related investments.

"It will strengthen resilient and diversified supply chains, help us to collaborate and financing and with the effective management of critical minerals and rare earths," Jaishankar added.

The agreement is expected to encourage investments, improve technology partnerships, and help both countries build long-term security for critical mineral supplies.

Why Critical Minerals Matter

Critical minerals and rare earth elements are important raw materials used in electric vehicles, batteries, semiconductors, solar panels, smartphones, aerospace systems, and defence equipment.

As countries focus more on clean energy and advanced technology manufacturing, securing these materials has become a major global priority.

The issue has become even more important because China currently controls a large part of the global rare earth processing and refining market, giving it strong influence over global supply chains. To reduce this dependence, India and the US are working together to build alternative and more reliable supply chains for critical minerals.