Mining stocks have had a shaky start to 2025 even though the sector’s core fundamentals remain strong.
Despite steady domestic demand, healthy production, and supportive policy moves, global events have stirred up some short-term volatility.
A big shake-up came in April when the US imposed tariffs on China. While Indian mining companies were not directly hit, the move shocked global markets. Investors pulled back to safely.
But the long-term story for mining looks solid. With the world racing towards clean energy, EV production, and infrastructure development, the demand for metals such as copper, lithium, and iron ore is only going up.
If you are looking to tap into this global change and add some commodity exposure to your portfolio, these three rapidly growing mining are worth keeping on your watchlist.
For such investors, here are three fastest-growing mining stocks to add to your watchlist.
These stocks are filtered using Equitymaster’s powerful stock screener- Fastest Growing Mining Stocks.
#1 Coal India
First on the list is Coal India.
This Maharatna company contributes 80% of the country’s coal production. It supplies more than 80% of its production to the power sector.
It operates across eight states with 318 mines and thirteen coal washeries. It has a total washing capacity of 24.94 metric tonnes (MT) per annum.
It offers a wide range of products, including coking coal, non-coking coal, washed and beneficiated coal, coke, tar, and other value-added products.
Apart from this, the company has stepped into mining critical minerals. In 2024, the company got its first critical mineral asset, a graphite block in Madhya Pradesh. Graphite is crucial for lithium-ion batteries, used in electric vehicles and renewable energy storage.
By acquiring the composite licence for the 599.76-hectare graphite block, CIL has become the first major player in the critical mineral auction.
On the financial front, the company has seen impressive growth.
Coal India’s Financials (2021-2024)
Over the past three years net sales have grown 19.5%, while the net profit has grown at a CAGR of 43.3%.
The average RoE and RoCE for the past three-year period have stood at 45.9% and 58.6%, respectively.
Going forward, the company plans to venture into solar power with a 3,000 MW project, exploring coal gasification and coal bed methane extraction.
#2 GMDC
Next on the list is GMDC.
Gujarat Mineral Development Corporation (GMDC) is a mining and mineral processing company.
It explores a range of minerals, including bauxite, fluorspar, manganese, silica sand, limestone, bentonite, and ball clay.
These minerals have applications across various industries, such as hydrofluoric acid production, water purification, glass and ceramic manufacturing, and oil drilling.
Further, GMDC is set to significantly ramp up its lignite mining operations, with three new mines slated to begin production in the current financial year.
GMDC will initiate mining activities at the EFG Valia and Damlai mines in Bharuch, and the Lakhpat (Punrajpur) mine in Kutch. These mines are part of GMDC’s broader plan to develop six new lignite sites, boasting a combined reserve of 483 million tonnes.
The EFG Valia will be the largest of the new sites, with a peak mining capacity of 5 million tonnes per annum.
On the financial front, the company has posted reasonably healthy financials.
GMDC’s Financials (2021-2024)
Over the past three years net sales have grown 23.3%, while the company has turn profitable.
The average RoE and RoCE for the past three-year period have stood at 13.4% and 19.4%, respectively.
Going forward, GMDC has decided to scale up the production of indigenous lignite for supply during the monsoon this year.
The increased production is expected to ensure a seamless supply to textile-processing units in the city, which usually end up facing a shortage in the wet season.
#3 Ashapura Minechem
Last on the list is Ashapura Minechem.
Ashapura Minechem Ltd is the flagship company of the Ashapura Group. It is India’s largest mine owner and exporter of bentonite.
Globally, it ranks as the sixth largest producer of bentonite. The company is also the largest exporter of bentonite and metallurgical-grade bauxite from India. It controls nearly 3,500 acres of bentonite mines and 5,500 acres of bauxite mines.
The company is engaged in the mining, manufacturing and trading of various minerals and their derivative products.
The company offers multi-mineral solutions across several industries from soaps to steel, energy to edible oils, metal to medicine and cement to ceramics.
The company has activation, milling and processing plants in several different locations in India. They are located at Kutch and Jamnagar in Gujarat, Thiruvananthapuram in Kerala, and Ranga Reddy in Andhra Pradesh.
Ashapura Minechem’s Financials (2021-2024)
Over the past three years net sales have grown 32.2%, while the net profit has grown at a CAGR of 47.7%.
The average RoE and RoCE for the past three-year period have stood at 21.3% and 18.4%, respectively.
Going forward, the company plans to increase its production.
Conclusion
India’s mining and metals sector is gearing up for significant growth, backed by ambitious targets and strong policy support.
The country aims to reach a crude steel capacity of 300 MTPA and a production/demand level of 255 MTPA by FY31. This is set to drive massive demand for key minerals like iron ore, bauxite, and zinc.
Zinc demand alone is expected to double over the next five to ten years, thanks to large-scale investments in infrastructure and steel. With metals playing a central role in India’s economic development, mining companies are well-positioned to ride this wave of demand.
However, one challenge to keep in mind is the sector’s vulnerability to global commodity price fluctuations and geopolitical uncertainties, which can impact profitability and investor sentiment in the short term.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy Investing!
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