Can GMDC and NALCO shares benefit from the US led Pax Silica Alliance?

Synopsis: GMDC and NALCO shares gained after US Ambassador Sergio Gor said India will be invited to join the US-led Pax Silica Alliance, boosting optimism around India’s role in global AI, semiconductor, and critical mineral supply chains.

Two PSU company shares rebounded from the day’s lows on January 12, trading higher after comments by new US Ambassador Sergio Gor. His remarks on India’s inclusion in the US-led Pax Silica initiative also lifted the broader market.

With a market capitalisation of Rs. 17,933 cr, the shares of Gujarat Mineral Development Corporation Ltd closed at Rs. 563,95 per share, increasing 3% in today’s market session, making a high of Rs. 568.75, up from its previous close of Rs. 552 per share.

With a market capitalisation of Rs. 64,272 cr, the shares of National Aluminium Company Ltd closed at Rs. 349.95 per share, increasing more than 2% in today’s market session, making a high of Rs. 356.30, up from its previous close of Rs. 348 per share.

Pax Silica

The Pax Silica Alliance is a multilateral initiative launched in 2025 to strengthen secure supply chains for silicon, semiconductors, AI, critical minerals, and digital infrastructure. It aims to reduce dependence on concentrated manufacturing hubs by promoting cooperation among trusted, technology-focused economies. India was not a founding member, though talks with New Delhi are ongoing.

The Pax Silica Alliance currently includes Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia, countries with strong capabilities in advanced manufacturing, technology, and strategic supply chains.

What officials have said about India

Senior officials from alliance member countries have publicly underscored India’s growing role in global technology supply chains, even without a formal endorsement of its entry.

US officials have called India a key partner in diversifying electronics and semiconductor manufacturing, while Japan has emphasised deeper cooperation with India on semiconductor supply chains under Indo-Pacific frameworks. Israeli leaders have also highlighted India’s strong technology talent and innovation ecosystem as areas for strategic collaboration.

How could these stocks benefit 

GMDC and NALCO could benefit as Pax Silica focuses on securing supply chains for AI, semiconductors, and digital infrastructure, all of which require large amounts of critical minerals and metals. NALCO may see higher demand for aluminum used in electronics, data centers, and advanced manufacturing, while GMDC could gain from increased emphasis on reliable sourcing of minerals such as bauxite and silica.

The alliance also aims to diversify supply chains away from concentrated hubs, positioning India as a trusted alternative. This could lead to stronger export opportunities, policy support, and foreign investment for Indian mining and metal companies, improving long-term prospects for GMDC and NALCO.

About the companies

GMDC is a state-owned mining company based in Gujarat, India, engaged in the exploration and production of minerals such as bauxite, lignite, and fluorspar. It plays a key role in supplying raw materials for India’s aluminum and energy sectors and is strategically important for critical mineral supply chains.

NALCO is a leading Indian public sector enterprise in the aluminum and power sectors, involved in bauxite mining, alumina refining, and aluminum production. It supplies aluminum for domestic industries and export markets, contributing to India’s position in global critical mineral and metal supply chains.

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