Malaysian Smelting Corporation expects to acquire upstream tin assets in DR Congo by the middle of this year, CEO Datuk Seri Mohd Ajib Anuar told The Star newspaper. “We hope we can hasten this due diligence process and decision-making, I won’t say it will be long from today. We are actively looking at some of these assets which have great potential. We hope that during this period of low tin price we can do some acquisition, although it is still too early to name them specifically”.
The company is currently the sole buyer of tagged “conflict-free” tin ore from DRC and has been looking at tin production in Maniema. However the finalisation of a new cabinet for the country following recent elections is awaited before it makes a final investment decision.
Meanwhile MSC is negotiating the sale of up to half of its 75% stake in PT Koba Tin in Indonesia to the Indonesian investment group Optima Synergy Resources. The company has made several attempts to sell part of its share in Koba Tin to local investors, in order to help secure an extension of its Contract of Work and comply with changing regulations on foreign ownership of mines in Indonesia. The current CoW expires at the end of March 2013 and MSC has applied for a 10 year extension to 2023. Koba Tin recorded a substantial loss in the final quarter of 2011, reflecting both operating losses and provisions for mine closure should the CoW not be extended. PT Koba Tin produced 6,332 tonnes of refined tin last year. State company PT Timah owns the remaining 25% of its equity.
