Gujarat Mineral Development Corporation Ltd (GMDC) witnessed a remarkable surge of more than 10% in its shares during the early trading session on Tuesday, buoyed by the company’s announcement of receiving environmental clearance for the expansion of its lignite capacity. The state-owned mining player disclosed this pivotal development through an exchange filing on Monday.

GMDC secured environmental clearance from the Ministry of Environment, Forest, and Climate Change (MOEFCC) for expanding the capacity of its Surkha(N) lignite mine from 3 MTPA to 5 MTPA. The strategic significance of this clearance represents a significant leap in GMDC’s growth trajectory, aligning with the company’s commitment to sustainable and responsible resource utilization, as stated in the filing.

As of 2:18 pm the shares were trading 6.52% higher at ₹481.20

GMDC’s shares have experienced an impressive rally, witnessing a 310% surge from its 52-week low at Rs 122.75 recorded on March 28, 2023. The stock has demonstrated substantial growth, zooming approximately 1,575% from its COVID-19 lows and surging about 200% in the last six months, with a 20% increase in the last one month.

Roopwant Singh, IAS, and Managing Director of GMDC expressed the pivotal moment for the company with the environmental clearance for the Surkha(N) lignite mine expansion. Engaging two Turnkey Mining contracts at Surkha(N) Lignite Mine, GMDC aims to scale up production targets, anticipating substantial revenue growth. As Gujarat’s foremost mining entity, GMDC plays a crucial role in the state’s economic landscape, Singh added.

Follow on Google News
TOPICS: GMDC