Shares of a public sector undertaking (PSU) mining company Gujarat Mineral Development Corporation (GMDC) jumped up to another 9 per cent on November 27, extending their two-day rally to about 18 per cent.
At close, GMDC shares were at Rs 553.60 apiece on the National Stock Exchange (NSE), up 4.83 per cent from previous close. From its 52-week high of Rs 651 per share, the stock is down nearly 15 per cent. Year-to-date (YTD), the PSU stock has rallied 71 per cent, and over the last one year, it advanced 59 per cent.
The rally came after the Union Cabinet cleared a Rs 7,280-crore scheme to promote manufacturing of sintered rare earth permanent magnets in India. The new programme aims to set up 6,000 metric tonnes per annum of integrated rare earth magnet manufacturing capacity through five bidders selected via global competitive bidding. The scheme will run for seven years, including a two-year gestation period.
Rare earth magnets are crucial for the manufacturing of electric vehicles (EVs), renewable energy, electronics, aerospace and defence, are currently largely imported. The government expects domestic demand to double by 2030.
Information and Broadcasting Minister Ashwini Vaishnaw said the initiative will help create end-to-end manufacturing, from converting rare earth oxides into metals, then alloys, and finally finished magnets. This is expected to reduce import dependence as India pursues its Net Zero 2070 goals.
GMDC is developing a rare earth deposit at Ambadungar in Chhota Udepur, where it plans to set up an open-pit mine and beneficiation plant to produce mixed rare earth concentrate. This material will be processed at a proposed REE hub in Bharuch, where GMDC aims to separate key oxides such as neodymium and praseodymium used in permanent magnets. The company also plans an end-to-end value chain covering rare earth processing, metal and alloy production, and eventually manufacturing components like NdFeB magnets used in EVs, renewable energy and defence.
