Pending Investigation Into Perak River’s “Blue Discoloration,” Malaysian Smelting Confirms Subsidiary Halted Operations for Three Weeks

KUALA LUMPUR, Nov 22 — Malaysian Smelting Corporation (MSC, 5916) has confirmed that its 80%-owned subsidiary, Rahman Hydraulic Tin (RHT), has been ordered by the Minerals and Geoscience Department (JMG) to halt mining operations for three weeks following the discovery of a “blue discoloration” in the Perak River.

In a statement, MSC clarified recent reports claiming several mining operators were instructed to suspend activities. The company said operations could resume by Dec 4, 2025, provided investigations are completed within the stipulated timeframe and approval is granted.

MSC added it is cooperating closely with the state JMG to facilitate a swift and comprehensive investigation.

Financial impact manageable; smelting operations unaffected

MSC noted that although tin mining activities are temporarily affected, its tin smelting operations continue as usual, and the financial impact on FY2025 is expected to be “manageable” without any material disruption.

Company reiterates ESG commitment

MSC reaffirmed its commitment to ESG practices, stating that RHT has long implemented environmental protection measures such as:

• Erosion and sediment control plan (ESCP)
• River rehabilitation programme
• Closed-loop water system to prevent untreated discharge

The company is also advancing research into sulfate-reducing bacteria (SRB) for passive water treatment to strengthen sustainable mining efforts.

Government confirms two mining firms ordered to stop operations

Natural Resources and Environmental Sustainability Minister Datuk Seri Johari Abdul Ghani told Parliament that RHT and rare earth miner MCRE Resources were instructed to stop work for three weeks after viral images showed sections of the Perak River in Sungai Papan, Gerik turning blue, suspected to be linked to upstream mining activity.