Governor or Gujarat-Backed Lignite-producing Company To Spearhead India’s Rare Earth Supply Chain Development with Ambadongar Project
The stock is up by 42 per cent from its 52-week low of Rs 263.90 per share and gave multibagger returns of 435 per cent in 3 years.
Gujarat Mineral Development Corporation Limited (GMDC), a premier public sector enterprise in India’s mining industry, took a major step towards bolstering India’s rare earth elements (REE) self-sufficiency. The milestone was marked by the formal handover of exploration and geological data for the Ambadongar rare earth deposit from the Atomic Minerals Directorate for Exploration & Research (AMD) to the Chief Minister of Gujarat at a significant event in Gandhinagar.
The Ambadongar deposit, located in the Chota Udepur district of Gujarat, is one of the largest known sources of REEs globally. These critical minerals are essential to a wide range of clean energy technologies, including electric vehicles (EVs) and wind turbines. Through this initiative, GMDC aims to establish a complete supply chain, from extraction to processing and manufacturing, positioning Gujarat as a global leader in rare earth processing.
Event Highlights
- Data Handover: The formal transfer of exploration and geological data for the Ambadongar rare earth deposit to the Chief Minister of Gujarat.
- Development Blueprint: GMDC’s comprehensive plan to create a world-class REE processing hub in Gujarat was unveiled.
Project Overview
- Location: Ambadongar, Chota Udepur district, Gujarat.
- Investment: Rs 2,200 crore earmarked for mining and processing, with an additional Rs 1,300 crore dedicated to establishing the REE processing hub with an EBITDA margin up to 50 per cent.
- Production Target: 12,000 tonnes of rare earth oxides (REO) annually, targeted to commence by FY 2028.
- Strategic & Economic Impact: Potential to create thousands of jobs and to cater 15 per cent of India’s Nd-Pr demand.
This project is poised to play a crucial role in India’s clean energy revolution and will catalyse the transformation of our state’s economy and set new standards for sustainable growth. By harnessing the full potential of the rare-earth elements, we are laying the groundwork for a sustainable and competitive economy. This is a testament to our commitment to innovation, self-reliance and leadership in the global market.
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About Gujarat Mineral Development Corporation Limited
GMDC is India's second-largest Lignite-producing company and top merchant seller of Lignite. It is a State Public Undertaking of the Government of Gujarat. The company is engaged in mining lignite from deposit-rich areas across the state, the company markets it to various high-growth industries, including textiles, chemicals, ceramics, bricks and captive power.
The company has a market cap of over Rs 11,000 crore and 74 per cent is owned by the Governor of Gujarat. The stock is up by 42 per cent from its 52-week low of Rs 263.90 per share and gave multibagger returns of 435 per cent in 3 years.
Disclaimer: The article is for informational purposes only and not investment advice.