KUALA LUMPUR (Aug 18): Malaysia Smelting Corporation Bhd (KL:MSC) said its 80%-owned subsidiary Rahman Hydraulic Tin Sdn Bhd (RHT) has temporarily suspended mining operations following damage to drainage facilities caused by extreme rainfall earlier this month.

The suspension took effect on Aug 12 and will remain in place until further notice from the Perak Department of Minerals and Geosciences (JMG Perak), which issued the directive following a site inspection after the heavy rainfall on Aug 3.

“Approximately 60mm of rainfall was recorded within one hour. The extreme rainfall exceeded the maximum design intensity of 50mm for RHT’s existing drainage and retention pond infrastructure, resulting in damage to certain drainage facilities and the retention ponds being overwhelmed,” MSC said in a bourse filing on Tuesday.

MSC said RHT has begun the necessary repair and upgrading works and is engaging with JMG Perak on a comprehensive remedial action plan.

"As the duration of the suspension is subject to clearance by JMG Perak, the financial impact on the group cannot be determined at this juncture," it added.

Under normal operating conditions, the tin mine – located in Klian Intan, Perak – uses a closed-loop water management system with no routine discharge of process water from its mining operations into the nearby river.

Process water is retained and recirculated within the mine’s reservoirs while water quality is managed through lime dosing to neutralise acidity and regular sampling at designated monitoring points, MSC said.

RHT is Malaysia’s oldest and largest open-pit tin mine, having been established back in 1907.

Besides RHT, MSC sources tin from mines in Pahang and Central Africa. The company said that its tin smelting operations, which form a separate core business segment, are not affected by the directive from JMG Perak and continue to operate as usual.

MSC’s stocks fell by 1.5% to close at RM1.94 on Tuesday, with a market capitalisation of RM1.63 billion.