Malaysia Smelting Corporation posted a pre-tax profit of Malaysian Ringgit 55.6 million (US$15.5 million) for the nine months ended September 30, 2008, up 28.8% from the same period in 2007. For the third quarter ended September 30, 2008, pre-tax profit was RM 22.0 million, up 34.7% from Q3 2007. However a statement to the Malaysian stock exchange warned: "With the drastic slowdown of the world economy as the result of the global financial crisis, tin prices have fallen substantially and, coupled with the delay in the resumption of its small-scale tin mining operations, this would have an adverse impact on the performance of MSC”.
The use of small scale sub-contractors at its PT Koba Tin 75%-owned subsidiary in Indonesia was halted in January following allegations by local police that two of its sub-contractors had been involved in mining in a forest reserve. Although the company denied the charge and its smelting operations were only halted temporarily (from late January to mid March), discussions with the authorities over mining activities continued up to last month. The company now reports that “the necessary approvals from the relevant authorities to resume small-scale mining were finally received and production recommenced at the end of October 2008”.
MSC also stated that its long-running plan to establish a joint-venture tin smelting and refining operation in Guangxi, China, is expected to be completed during the first quarter of 2009.
