GMDC shares rise over 3.5% as India joins US-led strategic alliance 'Pax Silica'

GMDC shares rise over 3.5% as India joins US-led strategic alliance 'Pax Silica'

• India joins US-led Pax Silica alliance for critical minerals, AI
• GMDC shares rose 3.5% after India joined the coalition
• Pax Silica aims to build secure supply chains for AI and minerals

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Shares of Gujarat Mineral Development Corpn (GMDC) rose over 3.5% on February 20 as India joined a US-led strategic alliance 'Pax Silica', which is aimed at building a resilient supply chain for critical minerals and artificial intelligence.

India signed a pact joining the coalition at a ceremony at the AI Impact Summit here.

The signing ceremony was attended by Union Minister Ashwini Vaishnaw and US envoy to India Sergio Gor among others.

Gor said Pax Silica is a coalition of capabilities.

Shares of Orissa Minerals Development Company Ltd rose nearly 2% on February 20 while GMDC shares were trading 3.5% higher at Rs 580.7 apiece.

Closer cooperation with the US in rare earths and related areas raised expectations for these stocks due to higher strategic importance for domestic mineral producers, potential long-term demand support for critical raw materials and increased policy focus on exploration and processing.

"Pax Silica is a declaration that future belongs to those who build and when free people join forces," US Under Secretary of State for Economic Affairs Jacob Helberg said.

The move comes amid efforts by the two sides to finalise the proposed trade deal and move forward on several other initiatives to solidify bilateral ties after a spell of severe strain in relations.

The Pax Silica initiative was launched in December last year to build a secure, resilient, and innovation-driven supply chain for critical minerals and artificial intelligence (AI).

The Pax Silica Summit was held in Washington on December 12 last year where partner nations signed the Pax Silica declaration.

The declaration lays out a shared vision of deep economic and technology cooperation across supply chains -- from raw materials through semiconductors and AI infrastructure -- and commitment to mutual prosperity and security.

The member nations of the Pax Silica included Australia, Greece, Israel, Japan, Qatar, Republic of Korea, Singapore, the United Arab Emirates and the United Kingdom. Gor last month announced an invitation to New Delhi to join the strategic alliance. One of the key pillars of Pax Silica was to establish a durable economic order to drive AI-powered prosperity across partner nations.

"We recognise that a reliable supply chain is indispensable to our mutual economic security," according to the Pax Silica declaration.

"We also recognise that artificial intelligence (AI) represents a transformative force for our long-term prosperity and that trustworthy systems are essential to safeguarding our mutual security and prosperity," it said.

"We believe that economic value and growth will flow through and across all levels of the global AI supply chain, driving historic opportunity and demand for energy, critical minerals, manufacturing, technological hardware, infrastructure, and new markets not yet invented," it said