Malaysia Smelting strengthens niche tin expertise with technologically advanced smelting plant
- Once the Pulau Indah facility becomes operational, MSC will boost extraction yields while reducing manpower costs and its overall carbon footprint
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Global integrated tin mining and smelting group Malaysia Smelting Corp (MSC) heralds a new phase of strategic growth with the commissioning of a state-of-the-art smelting plant in Pulau Indah near Port Klang, Selangor. Outfitted with cutting-edge extractive technology using the Top Submerged Lance (TSL) furnace, the Pulau Indah facility positions MSC as a modern and cost-effective tin smelter. The monumental move highlights how MSC is combining its more than a century of niche tin expertise with technological innovations to further advance its smelting and refining processes.
“Our long history is a key competitive strength,” says Dr Patrick Yong, group CEO. “But we also realise that we’ve been doing the same thing in the past 100 years. To be successful and to remain competitive, we have to do something extraordinary and catch up with advances in technology. That’s the core motivation for our investment in the smelter in Pulau Indah. The main challenge here is the refurbishment and conversion of the original lead smelting plant to a tin smelting one coupled with furnace waste heat recovery, in hybrid function with photoelectric generation.”
Once the Pulau Indah facility becomes operational in the latter half of next year, MSC will significantly boost extraction yields while reducing manpower costs and its overall carbon footprint. With the TSL furnace, MSC will be able to smelt a larger volume of feed material because of higher reaction rates.
We have to do something extraordinary and catch up with advances in technology. That’s the core motivation for our investment in the smelter in Pulau Indah
Annual refined tin production capacity can be raised by 50 per cent from 40,000 tonnes to 60,000 tonnes using oxygen enrichment, a method that entails no additional capital. Additionally, MSC will benefit from Pulau Indah’s key location in a mature industrial area with good proximity to Westport and the London Metal Exchange warehouses.
MSC also expects to minimise its carbon footprint as natural gas will be used to fuel the TSL furnace. This complements MSC’s green energy efforts comprising its investments in hybrid electrification at the new smelter and partial hydroelectric-powered mining in Klian Intan where its mine is located. MSC may be the only integrated tin producer in the world to have maximised self-generated green electricity.
Meanwhile, MSC plans to phase out production at its 100-year-old smelter in Butterworth, Penang. Butterworth currently converts tin-bearing ores into high-purity tin metal for industrial applications. In 2018, MSC produced 27,085 tonnes of tin metal, retaining its position as the third-largest supplier of tin metal globally.
“In the new smelting plant, we will be fixing production inefficiencies while raising our capability and flexibility to meet customers’ requirements,” Yong says. “Reliability is key as we strive to develop long-term relations with our clients.”
With the outlook for the tin market continuing to be bright and driven by emerging applications in the semiconductor and battery markets, MSC intends to expand its tin mining business. Through Rahman Hydraulic Tin (RHT), MSC currently operates the largest open-pit hard rock tin mine in the country. To ensure the sustainability of its tin ore supply, MSC aims to raise the daily mining output of RHT and invest in exploration for new tin resources.
Moving forward, MSC is open to strategic acquisitions and pursuing organic growth to enhance its long-term competitiveness. Listed on Bursa Malaysia and the SGX Mainboard, MSC welcomes investors and industry partners with a long-term view as it seeks to venture into new mines and implement additional operational improvements. MSC offers promising opportunities as it is in a strong position to execute its growth strategy.
“Beyond demanding high quality, end-users of tin in different industries require continuity and security of supply,” Yong says. “That’s where we have a competitive edge over our rivals – we are here to stay. We’re big enough in terms of capacity; we have our own tin resource and a good source of natural gas as fuel; and we’re strategically located.”