Perth Mint loses market share to rival

As regulators scrutinise Perth Mint and the state government reviews its ownership, the business has continued to lose market share to rival ABC Refinery, which has added Bellevue Gold as a new client.

Sydney-based ABC Refinery is the second biggest gold refiner in Australia after the Perth Mint, which has faced a series of controversies over the past few years.

It was revealed yesterday that financial crimes regulator Austrac is expected to push back its independent audit of the state government’s Gold Corporation-owned Perth Mint.

The Western Australian government has flagged its own review into the future of the mint, with a sale of the business one possibility.

Meanwhile, Perth Mint’s direct competitor, ABC Refinery, has increased its stake in the market after securing aspiring miner Bellevue Gold as its latest WA client.

In a statement on the ASX yesterday, Bellevue said the refining agreement with ABC provided a pathway in which its gold could be refined separately.

“This will enable Bellevue’s gold to be marketed as a ‘green’ product, reflecting its net-zero status, which will in turn open the door to Bellevue potentially receiving a premium price for its gold,” Bellevue said.

ABC claims it refines 31 per cent of the gold produced in Australia and also says it refines a large portion of the gold imported into Australia.

Its data conflicts with the Perth Mint, which says it refines 79 per cent of Australian ‘gold dore’ production, according to its latest financial report.

That implies ABC has only a 21 per cent market share, and while the figures clash, the trend is clear.

Perth Mint’s annual reports disclose its market share has dropped steadily from 99 per cent in 2014-15 to its current level at 79 per cent.

The mint’s targets for Australian gold refined have also dropped over the years from 90 per cent in 2018-19 to 80 per cent in 2021-22.

ABC Refinery said it now serviced eight “significant goldmines” in WA alone.

“ABC Refinery has traditionally been the refiner of choice for new producers within Australia, such as Bellevue because of our strong ESG credentials and service efficiency,” the company said.

“This preference has also recently seen established producers within Australia and overseas now partnering with ABC Refinery for gold and silver refining services.”