KUALA LUMPUR (Nov 20): Malaysia Smelting Corp Bhd (KL:MSC) has confirmed that its 80%-owned subsidiary Rahman Hydraulic Tin Sdn Bhd has been directed by the Perak Department of Minerals and Geosciences (JMG) to suspend mining operations for three weeks following the Sungai Perak discolouration incident.
However, the group said mining activities are expected to resume on Dec 4, pending regulatory clearance.
"The group continues to engage with the Perak JMG to facilitate a swift and thorough investigation," it said in a filing with Bursa Malaysia on Thursday.
MSC said the financial impact of the temporary suspension, which took effect on Nov 13, is expected to be manageable and not material to its financial performance for the financial year ending Dec 31, 2025 (FY2025).
Tin smelting operations, which form the group’s other core segment, continue to run as usual and are not impacted by the directive, it added.
In the filing, the group clarified that Rahman Hydraulic Tin, which operates the country’s largest open-pit eluvial tin mine in Klian Intan, Perak, has long implemented environmental safeguards, including an Erosion and Sediment Control Plan, a River Rehabilitation Plan and a closed-loop water recirculation system designed to prevent untreated discharge.
"The team is also advancing research into passive water treatment using sulphate-reducing bacteria to further strengthen sustainable mineral development," it said.
The clarification comes after Acting Natural Resources, Energy and Climate Change Minister Datuk Seri Johari Abdul Ghani told Parliament on Wednesday that two mining companies operating in the upper reaches of Sungai Perak — Rahman Hydraulic Tin and rare earth miner MCRE Resources Sdn Bhd — had been ordered to halt operations for three weeks following the Cabinet’s approval of the suspension.
Johari said the decision was made after photos of the river near the Kampung Sungai Papan bridge went viral last month, showing the water turning a striking blue.
Initial checks by the Department of Environment indicated that the colour of discharge at MCRE’s facility matched the shade seen in the river, raising concerns over potential pollution.
Johari added that readings at the MCRE site showed waste levels of up to 13 becquerels — far above the one-becquerel limit under its environmental impact assessment — prompting regulators to scrutinise the chemicals used in the in-situ leaching process.
Shares of MSC closed up one sen or 0.69% at RM1.45 on Thursday, for a market capitalisation of RM1.22 billion. Year to date, the counter has risen more than 30%.