Malaysia Smelting Corporation Bhd said its 80%-owned subsidiary, Rahman Hydraulic Tin Sdn Bhd, has been directed to temporarily suspend its mining operations by the Perak Department of Minerals and Geosciences, effective Aug 12, 2026.
The directive followed a site inspection by JMG Perak after an extreme rainfall event on Aug 3, when approximately 60mm of rain was recorded within one hour.
MSC said the rainfall exceeded the 50mm maximum design intensity of RHT’s existing drainage and retention pond infrastructure, resulting in damage to certain drainage facilities and causing the retention ponds to become overwhelmed.
RHT has since commenced repair and upgrading works and is engaging with JMG Perak on a comprehensive remedial action plan.
The suspension will remain in effect until further notice from JMG Perak.
MSC said RHT normally operates 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 within the mine.
The company said the duration of the suspension remains subject to clearance from JMG Perak and, as such, the financial impact on the group cannot be determined at this stage.
MSC added that its tin smelting operations, which constitute a separate core business segment, have not been affected by the directive and continue to operate as usual.
The company said it will continue to work with the authorities on the necessary remedial measures to facilitate the resumption of mining operations.
