In early October, the International Tin Industry Association (ITA) confirmed after communication with Malaysian Smelting Company (MSC) that MSC has recovered to 80% of its operating capacity. It is estimated that MSC can produce about 1600 tonnes per month at 80% capacity. On September 21, Fastmarkets reported that 80% of MSC employees had returned to work.
Malaysia's outbreak control measures have been relaxed and MSC is now operating at 100% of its workforce capacity, the Star reported on October 11. On this basis, the MSC smelter is likely to be operating at close to full capacity.
The MSC declared force majeure in early June after the third wave of COVID-19 hit Malaysia. However, the company's force majeure remains in place. In addition, MSC has recently informed suppliers in Nigeria that it cannot receive tin concentrate from Nigeria due to high levels of radioactive elements.
In addition, the launch of MSC's new eco-friendly plant in 2022 is expected to boost MSC's profitability, according to the Star. After that, MSC production will be carried out at its new smelter in Pulau Indah as the company phases out the closure of its 100-year-old reflector in Penang. MSC's new smelters will cost at least 20% less to produce than older smelters, require 40% or less manpower, and increase capacity by 50%.
