Page 29 - ar2011

MSC Group continues to pursue opportunities to
expand its tin reserves in Malaysia and Indonesia and
has identifed several prospective tin mineralised areas
for exploration and development. Discussions are on-
going with a view towards progressing with possible
acquisitions. MSC Group is also evaluating several tin
prospects in the Democratic Republic of Congo (DRC).
DRC has been a signifcant source of tin concentrates
for MSC Group’s international tin smelting business.
DIVESTMENT OF NON-TIN ASSETS
Several divestments were made during the year
in respect of MSC Group’s non-tin assets. MSC
Group will continue to pursue the divestment of
the remainng two non-tin assets at acceptable
prices. At the end of 2011 MSC Group’s remaining
non-tin investments included a 30% interest in the
unlisted KM Resources Inc which owns a proftable
polymetallic mine (producing copper, gold, zinc and
silver in concentrates) in the Philippines and a 15.42%
interest in a Canadian-listed nickel development
company, Asian Mineral Resources Limited.
Although the coming year will continue to be challenging
due to weaker demand for commodities arising from
prevailing global economic uncertainties such as the
eurozone sovereign debt concerns, the long-term
outlook of the tin industry remains positive. Given
MSC Group’s continued efforts to improve operating
effciencies and increase rationalisation efforts at
its Indonesian operations, subject to renewal of
P. T. Koba’s COW in Indonesia, MSC Group is well-
positioned to deliver proftable growth and sustained
value for its shareholders.
MSC continues to pursue
opportunities to expand its tin
resources in Malaysia and Indonesia
and has identified several prospective
tin mineralised areas for exploration
and developments.
Tin Dredge at P. T. Koba
Drilling for offshore tin deposit on a barge in Indonesia
covering an area of 601 hectares. MSC Group recently
announced that the State of Perak has approved the
renewal of these leases for a longer period up to
2030. The extension of the current mining leases to
2030 will enable Rahman Hydraulic Tin to undertake
the necessary additional investments to optimise
its long-term production levels. This is expected to
result in an increase in future earnings and thus, the
overall valuation of Rahman Hydraulic Tin.
27 THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2011