Governor of Gujarat Gains Rs 12,000 Crore on September 12: Gujarat-Based Mining Stock Jump 10% After Government Plans Incentives for Rare Earth Magnet Production

Gujarat Mineral Development Corporation (GMDC) shares surged 10 per cent on September 12, closing at Rs 565.80 after Union Minister H D Kumaraswamy announced that the government is preparing fiscal incentives to support domestic production of rare earth magnets. The announcement comes amid global supply chain disruptions, as China continues to dominate the market for these critical raw materials.

The minister for Heavy Industries and Steel said a scheme is being designed to provide “targeted support” for both capital and operational expenditure. This support would help bridge cost gaps, reduce tariffs on essential equipment, and ensure continuity of supply despite rising global restrictions. Rare earth magnets, including neodymium-iron-boron (NdFeB), are widely used in electric vehicle (EV) motors, power steering systems, and other high-performance automotive applications.

In July, Kumaraswamy indicated that inter-ministerial consultations were underway for a Rs 1,345-crore scheme aimed at subsidising rare earth magnet production in India. Two manufacturers are expected to benefit from the plan, which will also support investments in processing facilities to convert rare earth oxides into magnets. At present, Indian Rare Earth Magnets Ltd, a PSU under the Ministry of Atomic Energy, remains the sole custodian of India’s rare earth resources.

China’s export restrictions on key metals have affected global industries such as automobiles, electronics, and semiconductor manufacturing. India is now looking to strengthen its role in the global value chain through fiscal incentives, alternative sourcing strategies, and potential supply deals with Myanmar.

On the market side, GMDC shares snapped a two-day losing streak to trade near record highs. The stock rose 10 per cent from its previous close of Rs 514.35, lifting investor sentiment.

The Governor of Gujarat holds a 74 per cent stake in GMDC, amounting to 235,320,000 shares. With the stock’s sharp move, the Governor’s portfolio recorded a 10 per cent notional gain, equivalent to Rs 12,107.21 crore in value.

Disclaimer: The article is for informational purposes only and not investment advice.