Perth Mint may be privatised

The state government has launched a strategic review of Gold Corporation, which operates the Perth Mint, with a sale of the business one option.

The Department of Treasury will engage a commercial advisor to consider options to manage the State’s risks in relation to its ownership of Gold Corp.

The options analysis will include the extent to which its ownership structure aligns with State Government goals.

“It is important to ensure the ownership and operation of Gold Corporation aligns with the best interests of the people of Western Australia,” Mines and Petroleum Minister Bill Johnston said.

“This process is in keeping with the State Government’s commitment to responsible financial management.”

Speaking to journalists this afternoon, Mr Johnston insisted the review was not specifically commissioned to investigate the possibility of privatising Gold Corp.

He declined to speculate on what ownership models may be suggested once the analysis is complete but conceded a sale of the organisation would likely be considered.

“All options are on the table,” he said.

“If this review said there was a better structure for ownership of the Gold Corporation, then we would look at that.”

Asked whether the review would be politically convenient, given recent controversies surrounding The Perth Mint, Mr Johnston insisted the two matters will be dealt with separately.

“It’s not practical to deal with ownership question of the mint until after AUSTRAC matters are complete,” he said.

“There’s no question of doing that.”

The review will be keenly followed by the gold mining industry, as the Perth Mint refines about 80 per cent of gold produced in Australia.

That proportion has declined from more than 90 per cent about five years ago.

The review will assess the impact of the Perth Mint on tourism, as its East Perth operation is a significant tourist attraction.

Gold Corp is a very large business, with revenue last financial year of $21.7 billion and total assets of $7.1 billion.

However it is also a low-margin business, with a net profit of $29.3 million in FY22 following a loss of $11.2 million in the prior year.

Another indicator of value is its net assets, or equity, which totalled $175 million as at June 30, 2022.

The possibility of a sale is at odds with the Labor government’s professed opposition to privatisation.

However, that policy stance has been applied very loosely.

The McGowan government tried (unsuccessfully) to sell the TAB, sold Landgate’s land titles register for $1.4 billion and sold an 80 per cent stake in a number of renewable energy assets, most notably the Warradarge wind farm.