Malaysia Smelting Corporation’s mining subsidiary Rahman Hydraulic Tin (RHT) has agreed to acquire an 80% stake in SL Tin Sdn Bhd, which has a 15 year mining lease at Sungei Lembing in Pahang state.
The sole shareholder of SL Tin, Dayang-Dayang Sdn Bhd, agreed to sell 40,000 ordinary shares to Rahman Hydraulic for 500,000 Malaysian ringgit (US$152,000). The acquisition is part of Malaysia Smelting’s business plans and strategies to expand its mining operations in Malaysia, and to develop a stable feed supply for its smelting business.
RHT will carry out the necessary exploration for tin deposits at the 267 hectare lease area, and upon confirmation of economically mineable tin reserves, would commence mining. If it receives positive exploration results, the lead time to production could be three to five years. Sungei Lembing was Malaysia’s main primary tin operation until the 1980s, with an underground mine producing 1,200 tpy of tin-in-concentrate. RHT’s mine production is some 2,000 tpy.
