Shares of Gujarat Mineral Development Corporation (GMDC) surged over 4% in early trade on Tuesday, March 17, after the company signed an MoU with the National Mineral Development Corporation (NMDC).
The share price advanced up to 4.07% intraday to Rs 551.5 apiece, according to data collected from NSE. The scrip was trading 1.65 % higher by 10:24 a.m. The benchmark NSE Nifty 50 was up 0.66%.
GMDC agreement with NMDC
On Monday, March 16, the Gujarat government-owned enterprise informed the exchanges that the MoU was signed to explore opportunities for collaboration in the Rare Earth Elements (REE) sector.
Through the agreement, both entities will focus on assessing the potential development of an integrated rare earth value chain in Gujarat, including exploration, mining, beneficiation, processing, and downstream applications. It will majorly explore opportunities associated with GMDC's Ambadungar Rare Earth deposit, a strategic initiative aimed at strengthening India's capabilities in the rare earths sector.
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Both organisations will work to evaluate opportunities for technical collaboration, project development, and potential business structures. Under the agreement, the partnership is also expected to enable knowledge exchange, technical evaluation, and efforts to boost rare earth resource development.
"This collaboration forms part of GMDC's broader rare earth development roadmap for the Ambadungar deposit, where the Corporation has been progressively advancing in resource utilisation, indigenous processing capabilities and pilot-stage technology validation initiatives," GMDC said.
Speaking on the development, Roopwant Singh, IAS, Managing Director, GMDC, said, "The collaboration with NMDC brings together complementary institutional strengths and technical expertise to explore opportunities in the rare earth sector. Through this initiative, GMDC aims to advance the development of a sustainable rare earth value chain while contributing to India's critical mineral resilience and industrial progress."
About GMDC
GMDC is a Public Sector Undertaking of the Government of Gujarat. The company operates five lignite mines across Kutch, South Gujarat, and the Bhavnagar region, aimed to support critical energy and industrial requirements.
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