Plan to boost tin industry's downstream activities : Dr Ling

Malaysia will not revive its tin industry although it was once the darling of the country's economy in the late 1970s. Instead more focus will be given to boost the mineral's downstream activities.

Primary Industries Minister Datuk Seri Lim Keng Yaik said even if tin prices were to return to remunerative levels, Malaysia does not have the capacity to produce a substantial amount if the focus is on alluvial sources alone.

"Nonetheless, as a processing and manufacturing nation, I am keen to see Malaysia as an important centre for tin refining and smelting, tin-based products manufacturing, tin trading and marketing and tin technology skills and engineering."

At its height in the late 1970s, Malaysia produced over 70,000 tonnes. Today, with the depletion of economic alluvial tin reserves and the unremunerative tin metal price following the tin market collapse in 1985, Malaysia produces only 5,000 tonnes a year, or 1.8 per cent of the global output of 270,000 tonnes.

More than 50 per cent of the global output is produced by China, followed by Indonesia (30 per cent) and Peru (13 per cent). Malaysia at present, has over 40 active units nationwide with the bulk of it in Perak's Kinta Valley.

Dr Lim had earlier witnessed the signing of a memorandum of understanding (MOU) on future tin collaboration among four parties in Kuala Lumpur yesterday. Also present was Tin Industry (Research and Development) Board Malaysia chairman Datuk Mohd Ajib Anuar.

During the signing ceremony of the MOU, the parties involved were all represented by their respective representatives - UK-based Tin Technology Ltd by its managing director David Bishop; Mineral and Geoscience Department by its director general Dr Chu Ling Heng; Tin Industry (Research and Development) Board by its, secretary Muhammad Nor Ahmad and Universiti Sains Malaysia by its director corporate division Associate Professor Wan Ahmad Kamil.

The agreement will mark the beginning of sharing of intellect and expertise among the four parties in their collective bid to identify future applications and potentials of tin, its compounds, tin-based technologies and tin-based materials for industries.

The agreement also paves the way for the parties involved to rejuvenate Malaysia's tin industry by undertaking collaborative, consumption-driven research as well as development and marketing in the usage of tin and tin-based technologies.

Research works of the mineral will also cover its use as advanced materials, including composites for industrial applications and replacements for toxic materials.

"The tin mining industry in the country is on the decline although I understand that efforts by the industry players have been initiated to rejuvenate the industry."

"However, I believe this can be realized to some limited extent through the willingness of state governments to open ups more land for mining and to extend lease renewals," Dr Lim said.

He added that the most important factor players must push for is the price of tin be at remunerative level of US$4750 (US$1 = RM$3.80) a tonne or RM18 per kg from current levels of US $4,600 or RM17.48 a kg.

"I believe the global demand for tin particularly in the electronics industry and for use in association with other advanced materials in industrial applications such as composites, may push up prices in the near term," Dr Lim said.

Nevertheless, Dr Lim said Malaysia will push for the development of the tin sector such as the setting up of the already operational custom-built tin refiner and smelter in Butterworth, Penang, which is globally competitive.

Malaysia has also established a tin-based manufacturing sector which many generic tin products like solder, tin plate and pewter ware with brand names such as Royal Selangor Pewter.

"Malaysia also has activities in the region's only physical tin trading market via the Kuala Lumpur Tin Market established in 1986, which now employs online electronic trading," Dr Lim said.

Tin Technology is the only international organization dedicated to the tin industry, and has a global membership of 100 companies from the tin consuming sector, producers and tin smelters from Australia, Belgium, Indonesia, Peru, Thailand and Malaysia.

Tin Technology's sister company of International Tin Research Institute, a membership-based organization, involved in research and development and marketing of tin-based technology.

With the signing of the MOU yesterday, Malaysia will now become part of the global tin umbrella body, with access to over 40,000 research reports gathered for the past 70 years and over £1 million (£1 = RM6.17) of research grants

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