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Tin maker Malaysia Smelting Corp declares force majeure amid COVID-19 lockdown

Kitco News

June 9 (Reuters) - Malaysia Smelting Corporation (MSC) Bhd , the world's third-biggest refined tin maker, said on Wednesday it had declared force majeure on its deliveries to customers because of coronavirus-related disruption to production.

MSC said in an exchange filing it had notified customers of a temporary suspension in its tin mining and smelting operations from June 4-14 to adhere with lockdown measures in Malaysia, where COVID-19 cases have spiked. Invoking the force majeure clause allows companies to suspend their obligation to fulfil contracts after unexpected events such as strikes and natural disasters. MSC churned out 22,400 tonnes of refined tin in 2020, according to the International Tin Association.

The suspension will have an impact on MSC's operations and financial performance in 2021, the company said, without elaborating. All contractual obligations are immediately suspended, it added. "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," it said. Benchmark three-month tin contract on the London Metal Exchange eased 0.2% to $31,175 a tonne as of 1035 GMT, after hitting its highest since May 2011 on Tuesday of $31,470 a tonne.

(Reporting by Mai Nguyen and Tom Daly, editing by Louise Heavens)


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