GMDC Share Price: Shares of Gujarat Mineral Development Corporation (GMDC) rallied for the second consecutive session on Monday, September 8. The stock rose by 20% in the last two trading sessions to hit a new 52-week high of ₹546.85 on the National Stock Exchange (NSE). On the BSE, GMDC shares hit a new 52-week high of ₹547.
The stock came on investors’ radar after China lifted its ban on export of rare earth magnets to India last month. Last week alone, GMDC shares rallied 26% and rallied 20% in the last two trading sessions.
Meanwhile, the government’s renewed focus on rare earth minerals also helped GMDC shares rally. The government is in talks with Peru for critical mineral supplies and for the first time, a separate chapter on rare earth elements has been included in the ongoing negotiations of a free trade agreement (FTA), reports CNBC TV18.
The second round of these talks took place last month and the next one is scheduled in October, the report said.
China’s Foreign Minister Wang Yi had assured External Affairs Minister S Jaishankar last month that Beijing would resume supplies of fertilisers, rare earth minerals and tunnel boring machines (TBMs), Hindustan Times reported on Tuesday, easing concerns of Indian manufacturers facing shortages.
China, which processes over 90% of global rare earth minerals (REMs), introduced export licence requirements for seven rare earth elements and magnets in April, tightening global supply chains. India, which imports over 70% of its REMs from China, is facing increasing disruptions.
Rare earth minerals, including neodymium, dysprosium and terbium, are crucial for EV motors, smartphones, missile systems and high-performance automotive components.
Earlier reports had revealed that GMDC is keen on setting up a rare earth element (REE) processing plant in Gujarat.
India is looking to move towards green energy across various sectors, and this is where GMDC is looking to conduct a scoping study to determine the economic viability of the project and outline at least one opportunity to develop a processing plant for the reserves at Ambadongar in Chhota Udaipur district of the Indian state of Gujarat.
As of 11:52 am, GMDC shares rose 6.66% to ₹542.55, outperforming the BSE 500 index, which was up 0.44%.
