Malaysia Smelting Corporation has reached agreement with the Perak state government on a new mining lease for its wholly-owned subsidiary Rahman Hydraulic Tin Sdn Bhd, which will run until 2030, the Edge newspaper reports. RHT is the largest mine in Malaysia, producing 2,010 tonnes of tin-in-concentrate in 2011. Under the new agreement the royalty rate paid to the state will double from 2.5% to 5% effective from this month.
In a statement to the Bursa Malaysia stock exchange, MSC said the extension of the current mining leases will enable RHT to undertake the necessary additional investments to optimise its long-term production level at the mine. “This is expected to result in an increase in future earnings and the overall valuation of RHT. Apart from contributing additional revenue to the state from higher royalty, the longer mine life is also expected to benefit the community and all other stakeholders under the principles and objectives of sustainable development,” it added.
MSC acquired RHT in 2004 and has since invested in substantial exploration and rehabilitation work.
