Gujarat-Based Mining Stock in Focus: GMDC Signs Rare Earth Collaboration MoU With NMDC

The share price of Gujarat Mineral Development Corporation Limited (GMDC) are likely to remain in focus after the company signed a Memorandum of Understanding (MoU) with NMDC Limited to explore strategic collaboration in the Rare Earth Elements (REE) sector. As of March 16, 2026, the company’s shares closed at Rs 532, compared to its 52-week high of Rs 118.38 recorded on January 5, 2026, and a 52-week low of Rs 71.90 touched on March 13, 2025.

GMDC and NMDC Sign MoU to Explore Rare Earth Collaboration

Gujarat Mineral Development Corporation Ltd. (GMDC) has signed a Memorandum of Understanding (MoU) with NMDC Limited to explore strategic collaboration in the Rare Earth Elements (REE) sector, marking a step toward strengthening domestic capabilities in critical minerals.

The agreement, announced on March 16, 2026, brings together GMDC, a Government of Gujarat enterprise, and NMDC Limited, a Government of India Navratna PSU, to evaluate cooperation across the rare earth value chain. The collaboration will assess the potential development of an integrated rare earth ecosystem in Gujarat, covering exploration, mining, beneficiation, processing and downstream applications.

A primary focus of the partnership is GMDC’s Ambadungar Rare Earth deposit. The two companies will jointly examine technical collaboration prospects, project development pathways and potential business structures linked to the deposit, as part of a broader initiative to strengthen India’s rare earth capabilities.

The MoU also enables knowledge exchange, technical evaluation and coordinated resource development efforts. The initiative aligns with national priorities aimed at reinforcing domestic critical mineral capacity and reducing import dependence, while supporting downstream industries tied to clean energy technologies, advanced manufacturing and strategic sectors.

About Gujarat Mineral Development Corporation 

Gujarat Mineral Development Corporation Limited (GMDC) is a state-owned mining company and a Government of Gujarat enterprise engaged in the exploration, mining, and processing of various minerals. The company primarily operates in lignite mining, along with other minerals such as bauxite, fluorspar, manganese, silica sand, and limestone. Established in 1963, GMDC plays a significant role in supporting the industrial and energy sectors in Gujarat by supplying raw materials to power plants, cement manufacturers, and other industries. The company also focuses on expanding its presence in critical and strategic minerals, aligning with India’s efforts to strengthen domestic resource development.

Gujarat Mineral Development Corporation Limited (GMDC) has a market capitalisation of Rs 16,922 crore. The company reported a Return on Capital Employed (ROCE) of 14.1 per cent and a Return on Equity (ROE) of 10.9 per cent. It has also maintained a dividend payout ratio of around 42.6 per cent, reflecting its dividend distribution track record.

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