Sun, Jun 01, 2025
In a significant move to diversify its mining operations, Gujarat Mineral Development Corporation (GMDC) is preparing to develop a copper mine near Ambaji in North Gujarat. Once operational, this would be the only copper mine currently under development in the country. Interestingly, exploratory drilling and sample analyses have also revealed traces of gold and silver in the area. Additionally, GMDC plans to begin operations in three new lignite mines this year.
GMDC’s Managing Director Roopwant Singh shared that after overcoming several technical challenges, the project is now ready to move forward. Located around three kilometres away from Ambaji town, the site spans roughly 184 hectares and holds an estimated 7.3 million tonnes of reserves containing copper, lead, and zinc. The total investment in the project is expected to be around ₹1,000 crore. This marks GMDC’s entry into Banaskantha district, further widening its mineral footprint in Gujarat. GMDC’s chairman Dr. Hasmukh Adhia also serves as the Chief Advisor to the Chief Minister.
Big Plans In Kutch: Cement Plant And More
GMDC is not stopping at metals. The corporation is also planning to set up a major cement plant in western Kutch to tap into its reserves of high-quality limestone. The team is also looking to put to good use minerals like silica sand, ball clay, and bentonite—materials that are usually pushed aside as mining waste. With the right processing, these too can become part of long-term, sustainable supply chains.
On another front, GMDC is also planning to install metal refining units close to its mining sites. These units will handle the ores extracted from the ground, turning them into valuable raw materials for industries such as clean energy, electric mobility, and electronics. The idea is to not just mine and move on—but to build something that supports both domestic industries and export demand.
New Lignite Mines On The Horizon:
In the current financial year, GMDC plans to initiate operations in three lignite mines—EFP Valia and Damlai in Bharuch, and Lakhpat (Punarajpur) in Kutch. These mines are expected to significantly contribute to Gujarat's lignite production and help reduce electricity costs. Together, these new sites have combined reserves of 483 million tonnes. A senior official mentioned that the new Valia site will have a mining capacity of 5 million tonnes per annum (MTPA), while Lakhpat and Damlai are expected to produce 3 MTPA and 2 MTPA respectively. Environmental clearances and land acquisition processes for these mines are currently underway. GMDC expects a total annual output of 10 million tonnes from these three sites.
Company Reports ₹814 Crore Profit:
According to the financial report for the fiscal year ending March 2024, GMDC recorded a revenue of ₹2,463 crore and a pre-tax profit of ₹814 crore, compared to a profit of ₹1,646 crore in March 2023. The decline in revenue is attributed to disruptions at the Tadkeshwar site, the re-establishment of the Rajpardi site, reduced use of ATPS and KLTPS power units, as well as pricing strategies and market fluctuations. The company remains optimistic, aiming for a combined 10 million metric tonnes of production and sales from all its lignite projects.