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SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 133

RESOURCE MANAGEMENT Actions Taken to Mitigate Waste Reduction:

Mudcake: Turning Waste to Fertiliser
Waste Management
Replicating the success achieved in the sale of molasses
MSM’s approach in dealing with waste reduction and the by-product as animal feed, MSM is making inroads
process flow of inputs, activities and outputs that impact turning mudcake waste into useful fertiliser. Mudcake
waste production are guided by the Group Sustainability Policy, is a compressed sugar refining waste by-product that is
the Environmental Policy and respective waste management produced in both MSM refineries. The DOE previously
control procedures established under each the MSM operations categorised mudcakes as Scheduled Waste which was
in order to comply with the relevant regulations such as the required to be handled, stored properly and to be removed
Environmental Quality (Scheduled Waste) Regulations 2005 from site by a licensed DOE contractor. In FY2021, the DOE
(Scheduled Waste Regulations 2005). had agreed and approved that mudcakes generated as
by-products by the refineries are no longer termed as
We record the hazardous waste generated in our operations Scheduled Waste.
as Scheduled Waste and all other non-hazardous waste,
including by-products, are categorised as Non-Scheduled Research was conducted on MSM’s mudcake waste and it
Waste. This categorisation determines how waste is stored, was discovered that it reduces acidity in soil making it viable for
handled and disposed, in the value chain from production use as fertiliser. This led to a trial programme between MSM
to packaging to distribution stage. Some of the types of Johor and FGV Fertiliser in October 2021 to turn mudcake into
Scheduled Waste generated and tracked from MSM’s fertilisers. Based on the trial, the parties are in discussions on
own activities at each of its operations include waste whether all of the mudcakes generated by MSM Johor and
containing materials such as mercury, metal with MSM Prai can be taken up by FGV Fertiliser and if successful,
copper, zinc and chromium as well as containers, bags or a joint venture on this initiative is in the pipeline.
equipment contaminated with chemicals, pesticides. Potential collaborations with third party to supply mudcakes
Scheduled waste is strictly tracked and monitored at for the cement industry are also being explored at this stage.
our operations, by competent certified persons, The possibilities are exciting not just for MSM but for the
with pertinent details recorded in the internal database refining industry and environmental authorities at large.
as well as at the DOE website, as per the Scheduled MSM is also exploring opportunities to work with higher
Waste Regulations 2005. Scheduled Waste is outsourced to education institutions to conduct research on other potential
a supplier licensed by the DOE to collect, transport, process benefits and use of mudcakes.
and dispose waste in accordance with local regulations and
standards. Non-Scheduled Waste includes materials such
as plastic, paper boxes, office and general waste, spillage
and refining by-products such as mudcake and molasses.
To minimise disposal and to divert Non-Scheduled Waste
from being sent to landfills, MSM is looking at more efficient
recycling and reselling opportunities with appropriate
third party partners.

The total waste generated and tracked by the

MSM Group as Scheduled Waste (Hazardous)
and Non-Scheduled Waste (Non-Hazardous
Waste) in FY2021 is 20,109.57 metric tonnes.
Out of which, a total of 146.83 metric tonnes
of hazardous waste were generated from
our operations.