Zambry said the state was opening up the tin sector to increase its revenue. Perak stands to receive 5% in royalties from tin players.
They are now in the midst of considering applications both for licensing of exploration and concessions.
In 2009, a 30-year mining concession was awarded to Malaysia Smelting Corp Bhd subsidiary, Rahman Hydraulic Tin Sdn Bhd, for prospecting tin ore and other minerals in a newly identified 14,000ha in Pengkalen Hulu, near Ipoh.
In 2008, HWG Tin Mining Sdn Bhd secured a certificate to mine tin on a 202ha tract in Sungai Endah, Hulu Perak for 10 years until May 2018. HWG will start operations after Chinese New Year. HWG is 51% owned by Ho Wah Genting Bhd, 35% by Jiwa Seribu Sdn Bhd, 10% by Majuperak Holdings Bhd and 4% by Multi Prolific Sdn Bhd.
Potential earnings from the mining operations should bode well for Ho Wah, which is on track to post its highest profit in nine years.
For nine months ended September 30 2010, Ho Wah registered a net profit of RM6.86 million, almost matching its 2001 net profit of RM6.91 million.
All of Ho Wah's revenue came from the group's wire and cable business, but for this year, its tin ore mining will be a major earnings driver.
In 2009, Ho Wah posted a 12-month revenue of RM144.04 million, while up to the nine months of 2010, its revenue stood at RM186.05 million.
Ho Wah's tin mining operations are headed by HWG Tin Mining Sdn Bhd.
The company has a concession from the Perak state government to extract tin until 2018 at a 202.4ha site in Pengkalan Hulu in Grik. Ho Wah targets to extract some 2,000 tonnes of tin ore a year.
On the average, it is about 150 tonnes a month, the tin ore will be sold to Malaysia Smelting Corp Bhd.
On the cost, estimates that it will cost around US$7,000 (RM21,400) to extract one tonne of tin ore.
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