Singapore listed tin producer Malaysia Smelting Corporation is currently looking to acquire concessions for 3 to 4 tin mines in Malaysia and Indonesia to tap into strong demand from China's booming electronics industry.

Mr Mohd Ajib Anuar CEO of MSC said that the company may invest up to MYR 200 million to increase its mining assets in the near term. MSC currently operates 2 mines in the Malaysian state of Perak and Indonesia's Bangka Island. It also processes tin at its two smelting plants in Penang and Bangka which have total capacity of 60,000 tonnes.

Mr Mohd said that we raised MYR 104 million from the Singapore listing and out of that we've earmarked RM80 million for financing development of new mines. With that MYR 80 million plus some borrowing we would have possibly MYR 150 million to MYR 200 million to look for expansion of new mines. Potential locations are Bangka in Indonesia as well as Perak and Pahang, two major tin producing states in Malaysia.

According to industry group ITRI, last year, MSC together with its Indonesian subsidiary PT Koba Tin had total refined tin output of 45,381 tonnes making it the second largest producer in the world behind China's Yunnan Tin.

Mr Anuar said that MSC is adding a mining unit to raise its production by 20% or around 360 tonnes per year at its Rahman Hydraulic mine in Perak from the H2 of this year. In the Q1 ended March, MSC generated profit before tax of MYR 27 million in Malaysia and MYR 22 million in Indonesia. Rahman Hydraulic which produced 452 tonnes of tin contributed MYR 16 million. The lowest tin price level at which the industry can remain roughly profitable is USD 15,000 per tonne to USD 20,000 per tonne.

He said that China will continue to be the world's largest consumer of tin because of the booming electronics industry. In Taiwan and Korea, we have also seen increased consumption level.

(Sourced from Reuters)