Koba Tin buy will make MSC a world-class tin mining firm
By David Tan in Penang
- New Straits Times 29th March, 2002

Malaysia Smelting Corp Bhd (MSC) will become an integrated world-class tin mining, smelting and marketing company, accounting for nearly 16% of world production, after it acquires 75% interest in PT Koba Tin for US$14 million in the first week of April.

Its group chief executive officer Datuk Mohd Ajib Anuar said that the proposed acquisition of Koba Tin would involve buying 100% equity interest in Kajuara Mining Corp Pty Ltd (Kajuara), an Australian investment holding company, which owns 75% interest in Koba Tin.

Ajib told reporters this yesterday after the company EGM during which shareholders approved the acquisition.

According to Ajib, after the acquisition , MSC's core business of smelting, refining and marketing of tin metal and associated value-added products will also be expanded to include tin mining, exploration and mineral processing.

"The proposed acquisition will also enable the group to expand its capabilities for securing tin concentrates for the group's smelter activities and for the production of tin metal," he said.

"The proposed acquisition of Koba Tin will boost MSC production of about 40,000 tonnes of tin metal per year. In 2001, MSC produced about 30,000 tonnes of tin metal and tin products, an increase of 16% from 26,182 tonnes produced in 2000," Ajib said.

He said Koba Tin also possessed comprehensive mineral processing and tin smelting facilities as well as strong mine management, operations, and technical expertise.

"Koba Tin, close to eastern Sumatra, is a leading low-cost world producer of tin with a current annual production level of 15,000 tonnes of tin, constituting approximately 5% of world tin production. Koba Tin's ore reserves and resources as at Dec 31, 2000 were 58,692 tonnes and 23,794 tonnes of tin respectively," Ajib said.

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