NALCO is strategically positioning itself to enter the critical minerals sector by exploring opportunities in rare earths, magnesium, and chromite mining. This diversification initiative represents a significant expansion of the company's operational scope beyond its traditional aluminium production activities.

Strategic Diversification Initiative

The state-owned aluminium producer's foray into critical minerals aligns with India's broader strategy to secure essential raw materials for various industrial applications. The company is evaluating entry into three key mineral segments that are considered crucial for India's industrial and technological advancement.

Critical Minerals Focus

NALCO's expansion plans come amid India's increased emphasis on securing critical mineral resources to reduce import dependence. The company's expertise in mining and metallurgy positions it well to leverage opportunities in these strategic mineral sectors.

The diversification strategy reflects the company's commitment to participating in India's critical minerals value chain. This move could potentially enhance NALCO's revenue streams while contributing to the country's mineral security objectives.

Market Positioning

As a major player in India's non-ferrous metals sector, NALCO's entry into critical minerals represents a natural extension of its existing capabilities. The company's established mining operations and metallurgical expertise provide a strong foundation for expanding into these specialized mineral segments.

This strategic initiative positions NALCO to capitalize on the growing demand for critical minerals across various industries, including electronics, renewable energy, and advanced manufacturing sectors.

Gujarat Mineral Development Corporation (GMDC) and National Aluminium Company (NALCO) shares experienced notable gains on January 12, 2026, following positive remarks from US Ambassador Sergio Gor about India's potential participation in the US-led Pax Silica Alliance. The announcement boosted investor sentiment around India's expanding role in global technology and critical mineral supply chains.

Stock Performance Overview

Both PSU companies rebounded from their day's lows, with strong closing performances that reflected market optimism about the strategic alliance opportunity.

Understanding the Pax Silica Alliance

The Pax Silica Alliance represents a multilateral initiative launched in 2025 designed to strengthen secure supply chains across critical technology sectors. The alliance focuses on silicon, semiconductors, artificial intelligence, critical minerals, and digital infrastructure, aiming to reduce global dependence on concentrated manufacturing hubs through enhanced cooperation among trusted, technology-focused economies.

While India was not among the founding members, ongoing discussions with New Delhi indicate potential future participation. The current alliance membership includes:

• Japan
• South Korea
• Singapore
• Netherlands
• United Kingdom
• Israel
• United Arab Emirates
• Australia

These countries bring strong capabilities in advanced manufacturing, technology development, and strategic supply chain management.

Official Perspectives on India's Role

Senior officials from alliance member countries have consistently highlighted India's growing importance in global technology supply chains. US officials have positioned India as a key partner for diversifying electronics and semiconductor manufacturing capabilities. Japan has emphasized opportunities for deeper semiconductor supply chain cooperation with India under existing Indo-Pacific frameworks, while Israeli leaders have recognized India's robust technology talent pool and innovation ecosystem as valuable areas for strategic collaboration.

Business Impact for GMDC and NALCO

Both companies are strategically positioned to benefit from the alliance's focus on securing critical supply chains for advanced technology applications.

The alliance's objective to diversify supply chains away from concentrated hubs positions India as a trusted alternative source, potentially leading to stronger export opportunities, enhanced policy support, and increased foreign investment for Indian mining and metal companies.

Company Profiles

GMDC operates as a state-owned mining company based in Gujarat, specializing in the exploration and production of critical minerals including bauxite, lignite, and fluorspar. The company plays a vital role in supplying raw materials for India's aluminum and energy sectors, making it strategically important for critical mineral supply chains.

NALCO functions as a leading Indian public sector enterprise covering the aluminum and power sectors. The company's operations span bauxite mining, alumina refining, and aluminum production, supplying both domestic industries and export markets while contributing significantly to India's position in global critical mineral and metal supply chains.