[Blockierte Grafik: http://biz.thestar.com.my/common/images/thestar_140x45.gif]
http://biz.thestar.com.my/news…ness/8088578&sec=business
Monday May 31, 2004
Tin mining makes major comeback
By HANIM ADNAN
THE tin mining industry, written off as an obsolete industry for almost two decades, is set to make a major comeback, thanks to China's huge demand, new uses for the metal and the new highs the price of the commodity has reached on the Kuala Lumpur Tin Market (KLTM) and the London Metal Exchange (LME).
The Malaysian Chamber of Mines, which has continued to champion the cause of the local tin mining industry despite the metal market's collapse and the cessation of operation of the London-based International Tin Council's buffer stocks in 1985, is optimistic that these encouraging developments would give renewed hope to the industry.
The chamber's executive director, Muhamad Nor Muhamad, said the chamber had charted a five-year road map under the grand mineral resources master plan, which forms part of its Vision 2008, to aggressively promote tin as well as other major metals and minerals like iron ore, gold, bauxite, sand-silica, aggregates, limestone, clays, kaolin and coal in Malaysia.
Zitat“Once in place we believe that the mining industry in Malaysia, given the full recognition and support by the Government, will be able to attract foreign investments over the next five years,” he told StarBiz in an interview in Kuala Lumpur.
Muhamad said that despite its lesser role in terms of production, the tin mining sector could still be considered one of the major contributors to the country's economy alongside the oil and gas, and palm oil, stressing that the industry needed the Government's continuing support to return it to its former glory.
[Blockierte Grafik: http://biz.thestar.com.my/arch…1/business/b_4muhamad.jpg]
Last year, Malaysia's tin production stood at only about 3,358 tonnes, a far cry from its heydays. “This year, we expect the same level of production, unless more new tin mining areas can be opened up,” he added.
Muhamad said given that tin price was trading above US$9,000 per tonne, the chamber was pushing hard to ensure that both the federal and state Governments would open up more tin mining areas and give leases to interested groups.
Zitat“We believe that states like Perak, Kelantan, Pahang, Johor, Terengganu and Sabah still have large deposits of tin and other minerals just waiting to be explored and mined,” he added.
Muhamad said even after the tin market collapsed miners, including the chamber’s members, had continued to seek approvals to carry out more prospecting, exploration and mining activities in Malaysia but the state Governments had been reluctant to issue more licences and leases due to profit concerns.
The Malaysian Chamber of Mines was incorporated on Dec 10, 1914, under the Federated Malay States Chamber of Mines Incorporated Enactment No. 25 of 1914, which is now known as the Malaysian Chamber of Mines Incorporation Act 1914.
It is the only chamber in the country to have been established via an Act of Parliament.
Today, it has 127 members from major mining management groups, mining companies, mining and mineral associations, consultants, engineers and individuals.
According to Muhamad, it is timely for the state governments to be more flexible in their policies and allow potential miners to rework the mines, especially in view of the insatiable demand from China, at least over the next two to three years, and the resurgence of tin uses in various industries.
Zitat“We (miners) have been entrepreneurs for decades. Just leave the decision to us whether a venture is going to be profitable or unprofitable. Just allow us to prospect, explore and mine,” he added.
In the case of tin, the chamber believes that Malaysia has the capability to produce about 10,000 tonnes a year in the near future. As at end-December last year, there were 54 mines in operation in the country.
Zitat“Of course, Malaysia cannot produce as much as before because most good virgin grounds for mining are gone.
“However, there is still potential if land can be made available to miners, like those in mountain ranges and in even offshore areas in Malacca, Terengganu, Johor and Perak,” he said.
Last Friday, tin closed at its all-time high of US$9,840 (RM37,392) per tonne on the KLTM. At such a price level, Malaysian tin miners could possibly reap good profits based on their current estimated average production cost of RM2.50 per kg or RM2,500 per tonne, Muhamad said.