GMDC To Study Economic Viability Of Setting Up Processing Plant For Strategic 'Rare Earth' Metals In Gujarat

Gujarat Mineral Development Corporation (GMDC) is mulling to study the economic viability of setting up a Rare Earth Elements (REE) processing plant in Gujarat.

Rare Earth Elements classified as “Strategic minerals”, also called Rare Earth Metals, are 17 lustrous soft heavy metals with various applications in electrical and electronic components, lasers, glass, magnetic materials, and industrial processes.

REEs are essential for developing green energy technologies like permanent magnets for Electric Vehicles and wind turbines and LEDs, thereby helping the country reduce its carbon footprint.

These are used in multiple industrial applications, including electronics, clean energy, aerospace, automotive, and defence.

GMDC is a state public undertaking of the Government of Gujarat and has five operational lignite mines located in Kutch, south Gujarat, and Bhavnagar region.

The company in a statement on Thursday (1 September) said that it is looking at conducting a scoping study to determine the economic viability of the REE project and outline at least one opportunity to develop the processing plant for the deposit at Ambadongar in Gujarat's Chotaudepur district.

“The REE exploration project will create high possibilities of producing REE ore in India and will encourage the country to become one of the leading players in the global market, which will also benefit the economic and strategic development of the country," said GMDC MD Roopwant Singh.

"GMDC will ensure the establishment of a complete value chain for REE elements, estimating the investments required for ventures with possible returns over time in the State,” Singh added.

Being a domain of the Central government's Department of Atomic Energy (DAE), the state of Gujarat is planning to develop mining and processing of REE in the strategic locations of the state and make Gujarat a RE processing hub for such ores mined in India and abroad, the company said.

It plans to set up mining operations, beneficiation plants, and value addition projects in the proximate zone of such minable resources and make India a rare earth powerhouse, it added.

The exploration of REE in the state has been taken up extensively by the Atomic Minerals Directorate (AMD) and the Geological Survey of India (GSI) in conjunction with each other.

“Understanding the significance of REE sector, GMDC commencing Rare Earth Processing plant will strengthen the state of the art of industries that use rare earth elements. Additionally, it will contribute to accomplishing the vision of the Government of Gujarat to make Gujarat a RE processing hub in India,” said GMDC chairman Raj Kumar.