GMDC Shares Jump Over 6% As Quad Focuses On Critical Minerals And Rare-Earth Security

Shares of Gujarat Mineral Development Corporation (GMDC) surged more than 65 intraday on Tuesday, May 26, after India siged a rare earth pact with the US to boost crtitical mineral supply. The state-run mining company's stock held a positive momentum after External Affairs Minister S. Jaishankar announced the signing of a landmark bilateral framework earlier today between India and the US to secure supplies of critical minerals and rare earths. The framework on securing supplies of mining and processing of critical minerals was signed on the sidelines of the Quad foreign ministers' meeting.

Shares of GMDC opened at Rs 655 against a previous close of Rs 655.55 and gained 6.5% to hit an intraday high of Rs 698.20 apiece on the NSE. Shares last traded 5.33% higher at Rs 690.50 apiece on the NSE against a mixed sentiment in domestic market. The stock has gained 7.25% in one week, 3.09% in one month, 15.19% on a year-to-date basis, and has nearly doubled in the last one year. The Ahmedabad-based PSU commands a market cap of Rs 22,005.60 crore, as per exchange data.

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GMDC Share Price Today

India, US sign pact to secure critical minerals supply chain

At the Critical Minerals Ministerial earlier this year, the United States signed new bilateral critical minerals frameworks and memorandums of understanding, announced financing opportunities to support strategic minerals projects, and celebrated the launch of the Forum on Resource Geostrategic Engagement, known as FORGE. The backdrop to the deal's signing is an increasingly urgent global scramble to reduce dependence on China.

"It is something very timely and critical," External Affairs Minister S Jaishankar said in presence of US Secretary of State Marco Rubio. "This framework aims to deepen our cooperation across the entire critical minerals and rare earth supply chain, including mining, processing, recycling and related investment," he said. EAM Jaishankar said the framework will strengthen resilient and diversified supply chains, help finance projects, and ensure effective management of critical minerals and rare earths.

"It is one more sign of how close our cooperation has been in a world where there are so many challenges but also so many opportunities," he said. In his remarks, Rubio highlighted the strategic partnership between the US and India and its importance for the respective national interests of both countries. "It is a tangible example of that," Rubio said referring to the inking of the pact.

The bilateral framework sits within the broader Quad architecture, bringing together India, the US, Australia, and Japan - where critical minerals, technology supply chains, and maritime security commitments are reinforced and institutionalised at a multilateral level. "We are two countries that have strategic interests in ensuring reliable long-term access to critical minerals and supply chains that are important for our innovation economy," he said.

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A readout by the US said the agreement marked a milestone in the strategic partnership between the two nations to ensure that the foundational elements required for advanced technology and energy are available within trusted networks. Through this pact, US and India will engage in international efforts to protect sensitive supply chains from coercive market practices and reduce our collective vulnerability to single-source monopolies, it said.

The US government is mobilising unprecedented resources to secure critical mineral supply chains, supporting projects with more than $30 billion in investments, loans, and other support in partnership with the private sector. These investments, along with Pax Silica and our reinvigorated diplomatic and commercial engagement are having a multiplier effect, mobilising private capital many times greater than government outlays, it said. Rubio also mentioned the US-backed Pax Silica initiative.

"The groundwork was laid for this on February 4 when you joined us at the Critical Minerals Forum that we hosted in Washington DC," he said, adding it gained momentum after India signed on to Pax Silica. "Today, because we have a strategic and shared interest in the fact that vibrant innovation economies such as ours cannot afford to leave the foundational materials of these industries vulnerable to single source monopoly that could deny us these things," he said.

"I'm glad we were able to sign this because in addition to being an important document and important agreement, it brings a tangible example of the strategic partnership between the US and India," he said. The Pax Silica initiative was launched in December last year to build a secure, resilient, and innovation-driven supply chain for critical minerals and artificial intelligence (AI).

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