Ashapura Minechem Signs MoU with China Railway for Bauxite Development

Ashapura Minechem Ltd announced on January 17, 2025, that its overseas subsidiary has signed a long-term Memorandum of Understanding (MoU) with China Railway. The agreement involves jointly developing the Fako bauxite deposit in Guinea’s Kindia region.

Division of Responsibilities

As per the agreement, China Railway will handle the production of bauxite and provide logistical solutions. Ashapura Minechem will focus on sales, marketing, and technical support, including quality assurance for the project.

Regulatory Filing

The MoU was disclosed to the Bombay Stock Exchange and National Stock Exchange under SEBI regulations. The filing described the collaboration as a step towards increasing production capacity and expanding the company’s presence in the global bauxite market.

The project also shows the ongoing trend of cross-border partnerships in the mining industry to address resource demands and foster regional development.

Local and Economic Impact

The project is to create jobs and support economic development in the Kindia region, one of Guinea’s underdeveloped areas. The company has talked about the potential for the initiative to improve livelihoods in the local communities.

Company Profile

Established in 1982, Ashapura Minechem is into mining, manufacturing, and trading minerals and their derivatives. Its products are used across industries such as cement, ceramics, steel, and energy. The company operates in India and seven other countries.

Stock Performance After Announcement

Ashapura Minechem’s share price increased by 9.99% on January 17, 2025, closing at ₹519.65. On January 20, today, shares rose further by 11:50 AM, reaching ₹532.50, showing a 2.48% increase for the day, a 49.41% rise over the past 6 months, and a 26.86% gain over the past year.

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