Policy needed to boost tin output Move to prevent dependency on imports
By Marina Emmanuel
- New Straits Times 29th May, 2001

Malaysia will be fully dependent on tin concentrate imports by 2005, unless a blueprint for the conversion of potential tin resource land is introduced.

Expressing concern over the lack of a 'coherent policy' to convert such land into mining leases and competing land use, now serving as deterrents to the potential increase in domestic tin-in-concentrates production, the Kuala Lumpur Tin Market is asking for incentives for the rehabilitation of mining land.

Malaysia imports RM120 million tin concentrates annually. This figure makes up more more than 80 per cent of the country's feed material consumption.

"Incentives for landowners will see dormant mines, especially those in Perak, rehabilitated which the country secures additional foreign exchange.

"Alternatively, these idle mining areas which total 1,200 hectares can be converted into other areas of development," said the market's chairman Datuk Mohd Ajib Anuar.

Mohd Ajib, who is the chief executive officer and executive director of Malaysia Smelting Corporation was speaking to reporters after the companyÕs meeting in Penang.

"Despite the sustainability of healthy tin prices in the country last year, the number of operating units in Malaysia declined from 54 to 38 units as at the end of 2000."

Mohd Ajib, who is also a member of the Malaysian Chamber of Mines, said a proposal on reviving the mining business was submitted to the Perak Government last year.

"We believe that with more pro active policies, our mining reserves can be revived without harming the environment," he added.

Meanwhile, MSC expects the global economic slowdown to have an adverse impact on earning of the world's metals and minerals sectors.

However, the strengthening of MSC's global network is expected to enable the company to sustain its level of intake of tin concentrates and tin-bearing materials to maintain its smelting plant at full capacity.

"Coupled with on-going proactive measures for continuous improvements in operating efficiencies and flexibilities, the group believes we will be able to sustain operations in 2001 although results are not expected to match the record earnings achieved in the previous year," Mohd Ajib said.

For financial year ended Dec 31, 2000, MSC group pre-tax profit increased by 10.8 per cent to RM27.48 million from RM24.8 million in the previous year.

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