KUALA LUMPUR (Sept 20): Tin miner and metal producer Malaysia Smelting Corp Bhd (MSC) is leasing two pieces of land totalling 423 acres in Klian Intan, Perak owned by Menteri Besar Inc (Perak) (MB Inc) for dumping overburden, tailings and slime arising from ongoing tin mining activities at its open-pit tin mine.

MSC said the initiative is part of the group's overall efforts to enhance its market position as one of the world's largest producers of tin metal in the world.

In a filing with Bursa Malaysia today, MSC said its wholly-owned subsidiary Rahman Hydraulic Tin Sdn Bhd has entered into a memorandum of understanding (MoU) with MB Inc to lease the two parcels of lands measuring 100 acres and 323 acres respectively, which are located adjacent to Rahman Hydraulic's existing tin mining leases in Klian Intan.

"The leasing of land will enable Rahman Hydraulic to have, among other things, sufficient land for the purpose of dumping overburden, tailings and slime arising from its mining activity undertaken on its mining leases.

"This will improve Rahman Hydraulic's mining productivity and waste management efforts, consistent with its sustainability goals," it added.

Valid for one year, the MoU will serve as the framework for both parties to enter into a definitive lease agreement for the land belonging to MB Inc, as well as for other potential business arrangements, with each other in relation to, but not limited to, tin mining and related activities in Perak.

In a separate statement, MSC chief executive officer Datuk Dr Patrick Yong said the MoU will pave the way for the group to commence strategic negotiations on expanding its tin mining leases, as well as to undertake any other joint efforts with MB Inc.

"As an integrated tin producer, our tin mining activities are important to the continuity of the group's tin smelting operations. The expansion of tin mining leases will augur well for the group's production output of tin-in-concentrates, which currently only contributes approximately 10% of our tin smelting requirements," he added.

As ongoing efforts are being made to identify new mining leases to expand its upstream business, MSC said it is also enhancing its downstream production efficiencies with the relocation of its smelting plant to a new facility in Pulau Indah, Selangor.

"Once the new plant is fully operational, MSC expects recovery yields and costs savings to improve significantly," said Yong.

MSC shares closed unchanged at 73.5 sen today, with 35,000 shares done, bringing a market capitalisation of RM294 million.