The state government will take tighter control of the Perth Mint, bringing its operator Gold Corporation further in-house in a move celebrated by the state's largest producer.
The state government will take tighter control of the Perth Mint, bringing its operator Gold Corporation further in-house in a move celebrated by the state's largest producer.
Mines Minister David Michael revealed the move in parliament this afternoon, confirming the organisation would remain in state hands and fall under the rules of the Government Trading Enterprise Act.
That would clear the way for more oversight from government, requiring ministerial approval from the mines minister and treasurer over significant transactions for major subsidiaries and significant asset disposal.
Mr Michael said the state remained committed to its ownership the mint, which had been floated as a candidate for privatisation in the fallout from a government probe into the operation.
In November, federal government financial regulator AUSTRAC placed an enforceable undertaking on Gold Corporation requiring it improve its compliance with anti money laundering and counter-terrorism finance laws by April 2025.
The move comes within days of the Australian dollar gold spot price hitting record highs of $3,809 per ounce this week and coincides with the second day of the Diggers & Dealers Mining Forum in Kalgoorlie.
Gold has been the talk of the conference.
Several producers were against the proposed privatisation of the mint, including Super Pit owner Northern Star Resources – the number one producer in the state by ounces produced according to Data & Insights – which said last year that government ownership provided it “security, regulation and accountability”.
Speaking to Business News on the sidelines of the forum after the news broke, Northern Star chief executive Stuart Tonkin said the company was pleased with the outcome.
"We're super pleased to see the commitment by the state to keep the Perth Mint under its ownership," he said.
"Eighty per cent of our gold is produced here in Western Australia, and we refine here, and we support the mint."
Mr Tonkin said industry was not consulted on moves around the mint and conceded he was surprised by the timing.
"I think we were pretty vocal from the onset that it was important to our business, and I think it's important for the state to own that infrastructure, that asset and that overall underpins the security, which is really important when you're dealing with something as precious as gold. It's really key to our industry," he said.
Gold Corporation also issued a statement welcoming the move.
“This is a vote of confidence in the commitment and hard work of more than 700 mint employees and the important role the organisation plays in the WA community and the Australian gold industry,” chief executive Paul Graham said.
“The proposed reforms to the mint’s enabling legislation will further modernise our governance and support us to continue working with government, our customers and the people of WA in the next chapter of our 125-year history.
“This decision by the WA government also means that we retain our government guarantee and continue to benefit from the state’s AAA credit rating, as well as the ability to produce investor and collector coins and sell precious metal products into global markets – delivering returns to WA taxpayers and a competitive advantage to Australian gold producers.”
Mr Michael is expected to visit Kalgoorlie tomorrow.
