The Star reported that Malaysia Smelting Corporation Bhd is targeting to complete the disposal of its non tin investments and assets abroad by year end.
Dr Mohd Ajib Anuar CEO of the Group said that the group was looking at divesting, among others, its gold business in Australia, nickel in Vietnam, coal in Indonesia as well as copper and zinc operations in the Philippines.
However, he declined to comment on the estimated amount to be generated from the proposed divestments.
Mr Ajib said after actively pursuing the diversification model in 2007 and 2008 that the group had decided to reposition MSC back into its core of tin mining and smelting operations from 2009 onwards. The group has now ceased pursuing other metals and minerals except for tin.
He said that while our diversification then seemed like the right move, we believe MSC has stronger competitive position and niche expertise in tin business. The company would not proceed with its bonus and rights issues to raise capital as originally proposed in 2008.
He added that we will examine alternative options to raise the additional funds required in the immediate term for expansion of our tin resources and higher working capital for our Butterworth smelting operations.
Mr Ajib who is also ED of MSC said that the group was mapping new strategies and extensive programs for its tin business in Malaysia and abroad. In fact, the group plans to re deploy the proceeds from the potential disposal of non tin assets to expand its tin operation abroad for the group’s long-term growth.
He added that whenever we have the opportunity, we will try to grow through strategic acquisitions or organic growth in the upstream tin mining and smelting operations. We are keen to undertake investments in high resource-based countries like Africa, South America, Russia and Indonesia.
Mr Ajib said that the combination of reviving demand and supply constraints in China and Indonesia would help underpin tin prices this year despite the high level of London Metal Exchange tin stocks which is a negative factor.
(Sourced from the Star)
