Malaysian Smelting Corporation temporarily suspends smelting operations

News Analysis

7

Apr

2025

Malaysian Smelting Corporation temporarily suspends smelting operations

Malaysian Smelting Corporation (MSC) temporarily suspended smelting operations at its Pulau Indah tin smelter following a gas pipeline explosion on 1 April.

On 1 April 2025, a natural gas pipeline operated by Petronas exploded near the town of Puchong just outside Kuala Lumpur. The explosion led to 145 people receiving hospital treatment and damaged 190 homes. No deaths have been reported.

In addition to the humanitarian and infrastructure consequences, the pipeline explosion affected tin smelting operations in Malaysia. MSC, one of the world’s largest refined tin producers, announced that it had to temporarily halt smelting operations following gas supply disruption to its Pulau Indah tin smelter in Port Klang, approximately 32km west of Puchong.

It is currently unclear when the gas supply will resume. In a statement on 3 April, MSC announced that while there is no official timeline for the restoration of gas supply, it will follow up with relevant agencies and keep customers informed, noting that the temporary halt in production could impact refined tin output and shipments in the short term.

MSC operates two active tin smelters: the 60ktpy Pulau Indah smelter and a legacy 40ktpy smelter in Butterworth, which is scheduled to cease operations by 2025. As part of a gradual transition, MSC has been shifting smelting operations to Pulau Indah in recent years, and in 2024, it is estimated to have produced just over 16kt of refined tin—around 5% of global supply, according to Project Blue.  The tin market is experiencing a tight supply situation, with 16% of mine supply currently offline. This supply disruption will worsen the already limited availability in the tin market, adding further support to prices.


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