PETALING JAYA: Tin miner and metal producer Malaysia Smelting Corporation Bhd (MSC) has commenced construction of a new rotary furnace at its Rahman Hydraulic Tin (RHT) mine in Klian Intan, Perak.
The rotary furnace represents a strategic enhancement to MSC’s upstream operations by introducing on-site smelting at RHT, Malaysia’s largest open-cast tin mine.
With a total investment of RM10 million and targeted for completion by the third quarter of FY26, the facility will have a processing capacity of about 10 tonnes per day. It will enable the group to convert tin ore into crude tin metal directly at the mine site, prior to downstream refining.
The groundbreaking ceremony was officiated by Perak Menteri Besar Datuk Seri Saarani Mohamad.
Saarani said the project reflects continued confidence in Perak as a key hub for Malaysia’s mining and mineral processing industry.
“By introducing additional processing capabilities within the state, this investment enhances value creation from our natural resources, supports local supply chains, and strengthens Perak’s position as a historic tin-producing region,“ he said.
Currently, all tin ore produced from the RHT mine is transported about 400km to MSC’s smelting facility in Pulau Indah, Port Klang.
The introduction of on-site processing allows the ore to be processed into crude tin at source, improving impurity content management and reducing the weight and volume of material transported. This is expected to lower logistics costs, shorten lead times, and improve overall operational efficiency.
Crude tin produced at RHT will continue to be transported to Pulau Indah for final refining into high-purity tin products for delivery to London Metal Exchange warehouses as well as industrial, electrical, and electronics customers.
MSC co-CEO Nicolas Chen Seong Lee said the rotary furnace at RHT strengthens the integration between the group’s mining and smelting operations. “By initiating the primary smelting process at the mine, we can streamline material flow, improve efficiency, and provide a more consistent feedstock to our Pulau Indah smelter for final refining.”
Meanwhile, co-CEO Lam Hoi Khong said from a strategic standpoint, this investment strengthens the group’s cost structure by reducing the need to transport non-value-adding materials over long distances. “By shifting part of the processing upstream, we are able to optimise logistics, improve turnaround time, and enhance overall efficiency across the value chain.”
MSC operates under a strong environmental, social and governance framework, with ongoing initiatives to improve energy efficiency and reduce environmental impact.
At its Pulau Indah smelting facility, the group has already installed solar photovoltaic (PV) panels with a capacity of 1.26 megawatt-peak, supporting part of its energy requirements.
Building on this foundation, MSC is exploring the installation of solar PV panels at the RHT site to support the energy needs of the rotary furnace and related processing activities, with the aim of lowering overall energy intensity and carbon emissions.
