The share price of Gujarat Mineral Development Corporation (GMDC) is likely to remain in focus today, March 17 after the company announced a Memorandum of Understanding (MoU) with NMDC for collaboration opportunities in the rare earth elements (REE) sector.
Rare earth elements are a group of minerals used in several technologies such as electric vehicles, electronics, renewable energy equipment and certain industrial applications.
Let’s take a look at the key factors every investors need to watch out for –
Partnership to study rare earth opportunities
According to the company’s announcement, GMDC and NMDC will explore opportunities to work together in the rare earth sector. The partnership will focus on different stages of the rare earth value chain.
This includes activities such as mineral exploration, mining and processing. The companies will also examine opportunities in downstream applications linked to rare earth minerals.
GMDC operates as a mining company owned by the Government of Gujarat, while NMDC is a Government of India public sector enterprise with Navratna status. Through the MoU, the two organisations will study different aspects of rare earth development and evaluate possible project structures.
Focus on Ambadungar rare earth deposit
One of the central areas of discussion under the MoU is the Ambadungar rare earth deposit located in Gujarat.
Both companies will study the technical aspects of the deposit. This includes possible mining methods and processing techniques. The aim is to assess whether the resource can be developed as part of a larger rare earth project.
The companies will also study possible business models that could be considered if the project moves ahead.
Possibility of a rare earth value chain in Gujarat
The collaboration will also study the possibility of building a rare earth value chain in Gujarat. This would include several stages such as exploration, mining, beneficiation and processing. The plan may also cover supplying materials to downstream industries.
Technical studies and knowledge exchange
As part of the agreement, GMDC and NMDC will carry out technical studies and share expertise related to rare earth resources. The MoU allows both companies to examine different technologies, assess the potential of the resource and review possible development options.
It also provides a framework for coordination in research and technical studies related to rare earth mining and processing.
The partnership forms part of GMDC’s ongoing work related to the Ambadungar deposit, where the company has been conducting pilot-level initiatives to examine processing technologies and resource utilisation.
Stock performance in recent months
The announcement comes at a time when GMDC’s stock has shown varied performance across different time periods.
Over the past one year, the share price of the company has increased by around 116%. However, in the shorter term the stock has seen some decline.
In the last one month, the share price has fallen by nearly 6%, while over a six-month period it is down around 3%. So far in 2026, the stock has declined by about 11%.
The company’s 52-week high stands at Rs 651, while the 52-week low is around Rs 245.