Metal recycling firms' shares surge after new Budget measures

In the Union Budget speech on June 23, Finance Minister Nirmala Sitharaman announced that the central government will establish a Critical Mineral Mission

Metal recycling firms in India experienced a surge following the announcement of new measures for recycling critical minerals in the country's latest Budget.

Gravita India surged 20 percent to its highest level since November 2010, while Urban Enviro Waste Management jumped 5 percent and Antony Waste Handling and Eco Recycling saw an increase of 2.5 percent each.

In the Union Budget speech on June 23, Finance Minister Nirmala Sitharaman announced that the central government will establish a Critical Mineral Mission. This mission will focus on domestic exploration, mineral recycling, and the overseas acquisition of critical mineral assets. Its mandate will include technology upgrades, the development of a skilled workforce, an extended producer responsibility framework, and suitable financing.

On July 22, the Economic Survey 2023-24 highlighted concerns over the geographic concentration and trade restrictions on critical and rare earth minerals, calling them a significant constraint on India's renewable energy and EV ambitions.

India is actively seeking international partnerships to boost its critical minerals supply chain, including collaborations with resource-rich countries like Australia and participation in the Mineral Security Partnership (MSP).

The mining sector is hopeful for financial incentives in the Budget, such as viability gap funding for exploration companies, which would provide much-needed support.