Malaysia Smelting Corporation (MSC) has agreed to take a 40% stake in Africa Smelting Corporation (ASC), which is currently controlled by Mining Mineral Resources (MMR). ASC is building a new 3,500 tpy tin smelter in Lubumbashi in the Katanga province of DR Congo. One electric furnace has already been installed and a second furnace is under construction. The plant is due to start production in November and will produce 98% crude tin ingots which will be sent for final refining at MSC’s Butterworth plant in Malaysia.
MSC will pay US$400,000 for its equity stake, but also expects to contribute $2.2 million to the estimated $6.6 million capital cost of the project in the form of a shareholders’ loan. As part of the deal it will have two seats on the five man board of ASC and can nominate a Chief Operating Officer of the new company.
In a statement to Bursa Malaysia, MSC noted that MMR “is a major resource player, currently the most active player in the tin industry in Katanga and that all the tin concentrates currently sourced and produced by MMR are sent for smelting and refining at MSC Butterworth smelter”. MMR was established in Katanga in 2009 and last year sourced 4,122 tonnes of tin concentrate from the region. It has 6 production sites and 29 exploration permits and plans to build up both industrial scale and assisted artisanal production. It may also add refining capacity at the Lubumbashi plant once operations are fully stabilised.
