GMDC, NMDC shares rise nearly 4% on strategic rare earth collaboration deal

GMDC, NMDC share price: Shares of Gujarat Mineral Development Corporation Ltd (NMDC) and NMDC rose on Tuesday, March 17, after the two companies signed a memorandum of understanding (MoU) to explore opportunities for collaboration in the rare earth elements (REE) sector.

The stock of GMDC rose as much as 3.71% to ₹551.85 per share on the National Stock Exchange (NSE). At 11:38 am, it was up 1.94% to ₹542.40.

The scrip of NMDC was trading 0.26% higher at ₹77.76 apiece, with an intraday high of 1.61%.

The MoU seeks to strengthen cooperation towards securing critical mineral supply chain and developing a domestic integrated rare earth value chain covering exploration, mining, processing, separation and downstream manufacturing.

In an exchange filing, GMDC said that the companies will work together to look into opportunities for technical cooperation, project development and potential business structures. The deal is also likely to facilitate knowledge exchange, technical assessment and coordinated efforts towards advancing rare earth resource development.

This pact is part of a broader rare earth development roadmap of GMDC for the Ambadungar deposit, where the corporation has been steadily advancing in resource utilisation, domestic processing capabilities and pilot-stage technology validation initiatives.

"The initiative aligns with national priorities of strengthening domestic capabilities in critical minerals and reducing import dependence, while enabling the development of downstream industries linked to clean energy technologies, advanced manufacturing and strategic sectors," GMDC said.

Roopwant Singh, IAS, Managing Director, GMDC, commenting on the partnership, 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."