malaysian tin bulletin-april '11

8/4/2019 Malaysian Tin Bulletin-April '11

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MALAYSIAN T IN BULLETINMALAYSIAN T IN BULLETIN A P R I L 2011A P R I L 2011

The tin price on the KLTM opened the trading month ofApril at US$31,600 per tonne, which was also themonths lowest price level. The local physical tin mar-ket then closed the first trading week firmer atUS$32,800 per tonne, in line with the uptrend in theprice of the metal on the London Metal Exchange(LME). Traders said the surge was supported by strongbuying interest, particularly from Europe and Japan.The weekss total trading volume amounted to 241 ton-nes.

Tin prices continued to strengthen further during thesecond trading week. Backed by strong buying inter-ests during the period, the KLTM recorded its highestprice level for the month at US$33,300 per tonne on 12April. Thereafter, tin prices slid before rebounding toclose the trading week at US$32,750 per tonne. Ac-cording to a trader, the mid week decline was due to aretracement of gains on earlier short covering activitiesand was also influenced by the declining LME tinprices. During the second trading week, a total of 208tonnes of tin were traded.

During the third and final trading weeks, tin prices weretraded range bound between US$32,850 andUS$32,500 per tonne, in which the latter was also themonths closing price. The trading volumes for theseweeks were 244 and 175 tonnes, respectively.

The average tin price for the trading month of April in-creased substantially to US$32,530 per tonne fromUS$30,945 per tonne in March. There were 21 days oftrading on the KLTM in April.The average daily turnover recorded for the month was43 tonnes, one tonne higher than the Marchs average,while the highest daily turnover was 70 tonnes and thelowest was 25 tonnes.

April Tin Market ReviewApril Tin Market Review

Kuala Lumpur Tin Market (KLTM)


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for cash tin was US$32,461 per tonne while for 3-month tin it was US$32,478 per tonne.

Continuing the March up-trend, tin trading on the LMEduring the first week of April was on a positive momen-tum. Spurred by robust demand and strong buying in-terests, both the cash and 3-month tin recorded theirhighest price level for the month at US$33,255 pertonne and US$33,210 per tonne, respectively on thefirst day of the second trading week. However, pricesweakened thereafter with intermittent corrections up tillthe end of the trading month.

Overall, demand for tin metal in April was encouragingand prices on the LME ended the trading month on a

positive note. The market closed the trading monthmuch higher than its opening. Cash tin closed atUS$32,275 per tonne while 3-month tin closed atUS$32,325 per tonne

Meanwhile, trading on the New York tin market in Aprilwas almost in tandem with that of the LME. The aver-age New York spot tin price for the month wasUS$33,165 per tonne. Their highest and lowest pricesrecorded for April were US$33,995 and US$32,298 pertonne, respectively.

News HighlightsNews Highlights

Tin prices on the Kuala Lumpur Tin Metal Exchangetouched a new high on Friday when it closed atUS$32,800 per tonne. In the London Metal Exchange

(LME), tin closed at US$32,600. Tin prices have beenon an uptrend since last year. The annual averageLME cash settlement price for tin in 2010 was

US$20,447 per tonne, the highest recorded since dol-lar-denominated trading on the exchange began in1989. The average price was 50% higher than in

2009, the rise outstripping that of all the other LMEmetals.

Tin Touches New High at US$32,800

LME and New York Market

Tin trading on the LME during the month of April wasstrong during the first trading week and range bound

during the remaining weeks.

The opening price level at US$31,355 per tonne forcash tin and US$31,360 per tonne for 3-month tin werealso their respective lowest price level for the month.LME tin was traded within a wide price range duringthe month, with cash tin trading between US$31,355 toUS$33,255 and 3-month tin between US$31,360 toUS$33,210 per tonne. The average LME price in April


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This former mining town needs a masterplan to turn itinto a tourism hub, Datuk Seri Dr Ng Yen Yen said.The Tourism Minister said locals should provide feed-back on how the town could attract visitors. We canget local historians and retired teachers to become vol-

unteer tour guides and show visitors the towns heri-tage value, she said after launching a book about tinmining at the Heritage House of Gopeng Museum yes-terday.

Ng was responding to museum committee chairmanBernard Yaws proposal to turn Gopeng around. Shenoted that a tourism hub would not survive on its ownwith just a single attraction like the museum. It is im-portant for it to have places for visitors to shop for sou-venirs and fine dining, she said, adding that it required

Malaysia Smelting Corporation Bhd (MSC) is propos-ing to list its Indonesian unit, involved in tin mining, onBursa Malaysias Ace Market. The listing details of thecompany, called TMR Ltd, were posted on the websiteof the Securities Commission (SC) since last Friday.According to its draft prospectus, MSC will emerge asa substantial shareholder in the Bermuda-incorporatedTMR, having a 14.23% stake.

MSC chief executive officer Dato Seri Dr Mohd Ajib

Anuar has been appointed as non-independent non-executive director of TMR. Ajib is a well-known figurein the Malaysian tin industry, currently serving as thechairman of Kuala Lumpur Tin Market, chairman of theMalaysian Tin Industry (Research and Development)Board as well as director of tin authority body ITRI Ltdand ITRI Innovation Ltd UK. There appears to be astrong Malaysian line-up in the board of directors ofTMR.Former Home Minister Datuk Seri Mohd Radzi SheikhAhmad has been appointed TMR independent non-executive chairman. StemLife Bhd executive directorand chief financial officer Lim Jit Soon has been ap-

pointed a non-independent non-executive director. Theother substantial shareholder is Singaporean business-

cooperation from the locals and the Perak Governmentto come up with an integrated plan. State executivecouncilor Datuk Hamidah Osman said a masterplan forVisit Perak Year 2012 campaign would be revealednext month.

(Source: The Star, 18 April 2011)

man Tan Siak Soon with a 15.24% stake in the com-pany after the listing. He has previous involvements inthe property sector and mining business in Singaporeand Indonesia.

The major shareholder is an Indonesian, Eko WijayaParsito, who will have an indirect stake of 31.81% inTMR after the listing. Eko is the son of Hendry Parsito,who was previously the director of family-run tin miningbusiness PT Sarana Marindo, which is also a unit of

TMR. Hendry has since relinquished all official posi-tions in the company, but continues to share his experi-ence with the company. On January 15, 2010, Hendrywas appointed president commissioner of PT TenagaAnugerah, which is a 99% subsidiary of TMR.

Sarana is the holder of the Anggerik and Sampur con-cessions. These concessions form the mainstay busi-ness of the company. Meanwhile, the mining rights ofthese concessions are held by Tenaga Anugerah.TMRs business is mainly in off-shore exploration andmining as well as support activities for the productionof tin in the Bangka Belitung Islands, Indonesia. The

groups mining operations have been undertaken byTenaga Anugerah since 2006.

Ng: Mine the Tourism Potential of Gopeng

TMR Eyes Ace Market

Tin is making a strong comeback in terms of pricing aswell as in new applications, especially with the growinglead-free awareness campaign among world foodpackaging companies. The largest uses for tin are forthe production of solders and for tin plating.



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Currently, resources under the Anggerik and the Sam-pur concessions are 14,297 tonnes and 14,020 tonnesrespectively, based on an assessment and confirma-tion by the Independent Consultant Geologist. TMRs

current tin resources is about 28,317 tonnes, out ofwhich 25,766 tonnes are reserves that can support itsmining operations for about eight years. As at the lastpracticable date, about 8.54 million sq m and 813,000sq m, representing 74% and 27% of the Anggerik andSampur concession areas respectively have been ex-plored.

As at December 31, 2010, TMR turned around toachieve a net profit of RM2.74 million on the back ofRM21.46 million revenue. For the listing exercise,TMR will have an enlarged and issued paid-up sharecapital of US$77.45 million comprising 387.25 million

shares. The initial public offering will involve 90 millionshares of 20 US cents each, of which 10 million will befor the pink form offer, 60 million for placement offerand 20 million for the retail offer. The IPO price hasyet to be determined.


MSC Upbeat about TMRs Listing

Ace Marketbound Indonesian tin mining operator TMRLtd is set to be a significant investment to MalaysiaSmelting Corp Bhd (MSC) given its offshore miningoperations. MSC is one of the worlds largest inte-grated producers of tin metal and tin-based productswith tin mining and smelting assets in Malaysia andIndonesia.

Even though MSCs existing stake in TMR of 18.5%will be diluted to 15% after the listing exercise, the off-shore mining operation will add another feather inMSCs cap which is currently focusing on onshore min-ing activities, a source close to TMR told StarBizyes-terday. MSC stands to benefit from the expected divi-dend payment from TMR which was slated to be up-graded to the main board, the source added.

TMR posted a net profit of RM2.74 million on the backof RM21.46 million revenue. It will be issuing 90 mil-lion shares to raise about US$18 million. It will havean enlarged and issued paid-up capital of US$77.45million post-listing. TMRs business is mainly in off-shore exploration and mining as well as support activi-ties for the production of tin in the Bangka Belitung Is-lands, Indonesia. It also intends to acquire a smeltingplant in Bangka.

Meanwhile, MSC would be expanding its existing tin

resources via new acquisitions or joint-ventures withinterested parties in Malaysia and Indonesia, saidgroup chief executive officer Datuk Seri Dr Mohd AjibAnuar. He said the investments would be financedfrom the proceeds of about RM100 million generatedfrom MSCs dual listing exercise on the SingaporeStock Exchange early this year. However, MSC mightalso consider raising new capital, Ajib told reportersafter the companys AGM yesterday.

On the purchase of conflict tin-in-concentrates fromCongo, Ajib confirmed that effective from this month,MSC would stop its purchases, which represented 15%of the groups feedstocks should the minerals failed tomeet the requirements of the tagging system under theelectronics industry citizenship coalition smelter auditprogramme. Despite the shortfall in feedstock fromCongo, MSC would be sourcing from Australia andother countries. It will also seek new prospecting li-cences and mining leases in Malaysia and Bangka,Indonesia. Our smelting plants will continue to run atfull capacity, he said.In 2010, the group produced 45,381 tonnes of tinmetal, making it the second largest producer of tinmetal in the world. On tin price, Ajib said it was notimpossible for tin price to hit US$40,000 per tonne inthe medium term. The commodity is still fundamen-tally strong even though there is a short-term increase


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News RoundNews Round--UpUp

in tin supply from small producers, he added.


Huanunis Expansion Plan Delayed

The plan to expand the ore processing capacity ofEmpresa Minera Huanuni (EMH), Bolivias largest tinmine and part of the state mining company Comibol,has hit a snag as it has yet to appoint a contractor toundertake the expansion work. According to the com-panys spokesman, EMH has yet to evaluate the fourbids that it had received. The bids for the expansionwork were submitted some time in mid March, and theproject was expected to be awarded before end of themonth. Prior to the current one, there had been twoearlier unsuccessful tender exercises carried out by thecompany.Some US$50 million would be spend to expand themines ore milling capacity to 3,000 tonnes per day,which could increase its annual production of tin-in-concentrates up to 14,000 tonnes annually. EMHs cur-

rent mill capacity is 1,200 tonnes per day. It also hasan additional capacity of 300 tonnes per day from anearby mill formerly operated by co-operatives.

Last year, the Huanuni mines annual production of9,800 tonnes accounted for almost 50 per cent of Bo-livias total tin mine output in 2010.

Indonesian Export Rose in March

Provisional data from Indonesias Ministry of Traderevealed that there has been a sharp increase in tinmetal export since February. The number of tinchecked before export rose almost 38 per cent year-on-year to 9,051 tonnes in March, the highest monthlytotal since May 2009. Meanwhile, the cumulativetwelve months total is 95,082 tonnes.

This strong tin export performance came about despiteclaims by a consortium of private smelters that their

members had been forced to slow down their operationdue to the recent increased crackdown on illegal min-ers by the Indonesian police, and that those usingsmall dredges were unable to undertake mining opera-tion due to the rough sea condition.


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Special ArticleSpecial Article

China's Tin Import Declined

Sungai Lembing was once the largest, longest and deepest subterranean tin mine in the world, with a network oftunnels zig-zagging deep into the earth. Mat Ali Jusuh served for over 30 years at the mine which closed down in

1986. He talks to T.N. ALAGESH about the glory days of tin mining.

China's total refined tin import during the first quarter of2011 decreased by almost 60 per cent to 1,924 tonnes

year-on-year. Tin import in March fell by almost 40 percent year-on-year to some 900 tonnes, the seventhconsecutive month of year-on-year decline. This wasdue to Chinese domestic prices being lower in com-parison with the LME since last September. Accordingto official data, China exported 280 tonnes of refinedtin in March and none was exported in January andFebruary this year. However, actual export could begreater than the reported official total because someexporters were known to classify their tin export asproducts rather than metal, to avoid export duty.The amount of tin concentrates imported into Chinaduring the first quarter was unexpectedly high even

though the countrys domestic tin price was lower thanthe LME. Some 9,000 tonnes of tin concentrates wereimported during the period, an increase of 130 per cent

compared to the same period last year. The majority ofthe imported concentrates this year came from Myan-

mar. Last year, most of them came from Bolivia.

(Source: Tin in the News, ITRI Ltd. UK)

I remember arriving in Sungai Lembing at the tenderage of 16 after completing my education at SekolahMelayu Pekan and being impressed with what I saw. Ilearnt that the best paying job in town was with the Pa-hang Consolidated Company Limited (PCCL), a tinmining company which offered various facilities includ-ing accommodation, entertainment and also recrea-

tional activities. All these were hard to resist. Therewere several contractors who were employed by PCCLto hire miners, and in 1954, I was recruited as a la-bourer. I thought myself fortunate to be able to earnRM3 a day.

Initially, my job was to carry small pieces of rocks,which contained mud, sand and tin ore, in rattan bas-kets to a palong to separate the tin ore from mud andsand. There were about 60 of us, men and women ofall races, working on the surface. We were very closeand even shared meals during lunch breaks. Afterseveral years on the surface, I got my first experienceworking underground. I was paid RM5 for a six-hourshift daily but had to work extra shifts sometimes.

It was a little eerie in the beginning but I soon got usedto it. Sometimes, there were hundreds of people work-ing underground, almost an entire community. It wasonly then that I realised that working down in the shaftswas tough. Only a real man can stand the heat andface the dangers. We were exposed to falling rocks,

flash floods and suffocation. Those working under-ground included the water pump and lift operators, drill-ers, and those responsible for identifying the correctspots to bury explosives. As it was very hot some-times, some of us would strip down to our shorts andunderwear. I used to fear working during the rainy sea-son, as there would sometimes be flash floods. Butbecause of the risk, the company gave us extra incen-tives.

During the late 1960s, there were about 14,000 resi-dents staying in Sungai Lembing, which was even nick-named the countrys very own El Dorado. There werea few deaths involving mine workers. One involved aBritish lift engineer who lost his footing and plunged

Limbs Were Blown Off in the Tin Mine


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several hundred metres to his death. There were alsothe miners who were crushed to death by rocks, andthose who lost limbs in explosions. One section of thetunnel was once closed for nearly three months afterthe wooden beams caught fire. It was believed to have

been caused by a cigarette butt, but since no oneowned up, the entire team had their pay cut for amonth.

There was a National Miners Union and I was electedthe workers representative for Sungai Lembing. Thatwas how I got my nickname Ali Boss. I rememberleading the workers in several strikes to ask for morepay. Usually, the company would accommodate ourrequest and the strikes would end in less than threedays.

On Sundays, we would usually catch a movie at Sun-

gai Lembings old cinema, which is still there. I re-member bringing my wife and children to watch P.Ramlee and James Bond movies featuring Sean Con-nery. The adults were charged RM1.30 and the chil-dren 30 sen. Every year, the company would host asports day. The workers can participate in variousgames, including hockey, badminton and cricket. TheBritish officers loved to play cricket, and I rememberour children used to spend hours watching and cheer-ing them on.

In the early 1980s, there was a significant drop in tinore prices and the company began to retrench work-

ers. By the mid-1980s, the British offices began return-ing home. In 1986, the company decided to hold aspecial event to commemorate the closing of the minewhich had been in operation since 1891. The mood atthe Sungai Lembing football field was sombre on theday of the ceremony, May 15, 1986. Some 3,000 peo-ple braved the scorching hot sun to witness the event,which was also attended by the Sultan of Pahang Sul-tan Ahmad Shah.

Clad in baju melayu, I arrived at the field about noonand was embraced by some miners. I took my seatalongside a group of management staff. And then the

mine, which once contained the richest deposits of tinore in the world, was declared closed. Some of thewomen miners wept. When I delivered a speech onbehalf of the workers union, tears began to flow as Irealised that we might not be able to see each otheragain. The miners had come from around the countryand would be going their separate ways.

After delivering my short speech, I went backstage andsobbed uncontrollably. It was just too much for me tobear. When the mines closed, the work equipmentwas carted away and sold by the locals. Some timelater, a Chinese tycoon tried to reopen the mine. He

employed about 20 workers but was forced to leaveafter several weeks as the underground tunnels wereflooded due to faulty water pumps.

Now, only a handful of former miners still live in Sungai

Lembing, and most of them have grandchildren likeme, while others have moved elsewhere. Previously,visitors would ask us to take them down to the tunnels.However, it is no longer possible as grilles have beeninstalled at the entrance of the tunnels. SungaiLembing is now just another sleepy small town. Theformer general manager house is now a tin mining mu-seum.

(Source: New Straits Times, 10 April 2011)


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Tin StatisticsTin Statistics


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malaysian tin bulletin-april '11

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