GMDC, NLC India Rally as US Announces India's Entry into Pax Silica Initiative
Mining stocks GMDC, NLC India, and Nalco surged to day's highs on January 12 after US Ambassador Sergio Gor announced India's participation in Pax Silica, a US-led rare earth and supply chain security initiative. GMDC recovered 6% from day's low to ₹568.00, while NLC India gained over 3.5% from intraday lows. The initiative focuses on securing technology supply chains including critical minerals, advanced manufacturing, and computing infrastructure as part of the Trump administration's economic security strategy.
*this image is generated using AI for illustrative purposes only.
Mining sector stocks experienced significant gains on January 12 as US Ambassador Sergio Gor announced India's inclusion in Pax Silica, a US-led initiative focused on rare earth minerals and supply chain security. Shares of GMDC, NLC India, and Nalco all reached their day's highs following the announcement, reflecting strong investor sentiment around India's strategic participation in this critical minerals alliance.
Market Performance
The announcement triggered notable recovery in mining stocks, with investors responding positively to India's entry into the strategic partnership. Market performance showed strong momentum across the sector.
| Company | Recovery | Trading Price |
|---|---|---|
| GMDC | 6% from day's low | ₹568.00 |
| NLC India | Over 3.5% from intraday low | Not specified |
| Nalco | Day's high | Not specified |
Pax Silica Initiative Details
Pax Silica represents the US Department of State's flagship effort on AI and supply chain security, designed to advance new economic security consensus among allies and trusted partners. The initiative seeks to safeguard the full technology supply chain, including several critical components that are essential for modern technological infrastructure.
Key focus areas of the initiative include:
- Critical minerals extraction and processing
- Advanced manufacturing capabilities
- Computing infrastructure development
- Data infrastructure security
Strategic Partnership Expansion
The Pax Silica group includes several key allied nations working together on supply chain security. Current members comprise Israel, Japan, South Korea, Singapore, Britain, and Australia. The partnership continues to expand, with Qatar expected to sign the Pax Silica declaration on January 12, followed by the UAE on January 15.
Bilateral Relations Context
US Ambassador Sergio Gor emphasized the strength of bilateral ties, stating that "real friends can address their differences" when referring to the Narendra Modi-Donald Trump friendship in the context of bilateral relations. India and the US continue to actively engage on trade matters, with the next call between the two sides scheduled for Tuesday, contributing to the sharp recovery in markets.
Economic Security Strategy
Pax Silica serves as a key pillar of the Trump administration's economic statecraft strategy, aimed at reducing dependence on rival nations while strengthening cooperation among allied partners. The initiative addresses growing concerns about supply chain vulnerabilities in critical technology sectors and rare earth minerals, positioning participating nations to better secure their technological infrastructure and reduce strategic dependencies.
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