TIN TO TOUCH US$40,000 PER TONNE IN FIVE YEARS, SAYS MALAYSIA SMELTING

KUALA LUMPUR, April 27 (Bernama) -- Malaysia Smelting Corporation Bhd (MSC),
one of the world's leading integrated producers of tin metal and tin based
products, is optimistic that tin price will touch US$40,000 in the next five
years.

Its group chief executive officer and executive director, Datuk Seri Dr Mohd
Ajib Anuar, said the fundamentals had not changed although there was an increase
in short-term supply.

"Of course we have short-term effects due to the tsunami in Japan and the
Middle East crisis but the long term fundamental remains sound," he told
reporters after the company's 32nd annual general meeting here Wednesday.

According to MSC's 2010 Annual Report, the price of tin had surged above
US$32,000 per tonne in February from below US$27,600 the previous month.

"One of the key drivers of the new boom has been buying by investment funds,
supported by the accommodating monetary policies of governments around the
world.
"However, tin has outperformed other commodities because major investment
funds believe that market fundamentals should support high prices for at least
several years to come," the report said.

It also said the company would pursue its growth strategy on its core
business in tin through strategic acquisitions and organic growth where its core
expertise, skills and capabilities can add value to ensure its continued
leadership position in the industry.

MSC would also continue to pursue appropriate strategic options to divest
its remaining non-tin investments which include its 15.42 per cent interest
in Canadian listed nickel associate, Asian Mineral Resources Limited, and a 30
per cent interest in a polymetallic mine in the Philippines.

The group will focus on increasing its tin reserves and resources through
investments in explorations and acquisitions of new tin mining projects in
Malaysia and Indonesia, as well as brownfield developments at its existing
mines.