Malaysia Smelting appeals to resume operations at 60% workforce capacity amid MCO 3.0

THE Straits Trading Company on Thursday announced that its subsidiary, Malaysia Smelting Corporation (MSC), has temporarily suspended its tin mining and smelting operations in Malaysia from June 4 to 14 pursuant the country's Movement Control Order 3.0.

This is expected to impact MSC's operations and financial performance for the fiscal year ending Dec 31, 2021 - although the company "is unable to ascertain the extent of the impact" at this juncture, according to MSC in a copy of its June 9 announcement filed with the Singapore Exchange.

MSC has appealed to the relevant government agencies to be allowed to operate at 60 per cent workforce capacity "as a key supplier to the global tin supply-chain" - in line with the standard operating procedures set by Malaysia's Ministry of International Trade and Industry.

It has also issued a notice of force majeure to its customers, as the disruption in production will lead to a slowdown in MSC's scheduled delivery of tin metal.

All contractual obligations have also been suspended with immediate effect.

"The company will notify the customers of the termination or cessation of the force majeure notice as soon as we are able to resume the level of operations that will enable MSC to meet its contractual obligations," said MSC in its June 9 announcement.

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As at 9.13am on Thursday, Straits Trading was up S$0.01 or 0.4 per cent at S$2.86, while shares of MSC on the Singapore Exchange were flat at S$0.65.