NST warns the Australian government not to abandon the Perth Mint.

The How to register for foreign exchangeAustralian government has proposed selling the taxpayer-owned Perth Mint, which has been weighed down by a series of scandals, poor financial returns, and the loss of gold refining customers, to Sydney ABC Refinery.

Northern Star Resources (NST), one of Australia's largest gold producers, has harshly criticized the government's move to privatize the Perth Mint. The company's CEO, Stuart Tonkin, stated that for the past 125 years, the Perth Mint has supported the development of Australia's gold industry and the government should help it overcome the current challenges.

Northern Star Resources, one of Australia's largest gold producers, owns one of the world's largest and most important gold mines, the KCGM Operation (“KCGM”), which has an ore resource of 28.3 million ounces and a gold reserve of 12.2 million ounces.

In 2023, the Australian Broadcasting Corporation revealed that the Perth Mint sold "tainted" gold bars to the Shanghai Gold Exchange, prompting an investigation by the London Bullion Market Association (LBMA) into the mint.

Additionally, in August of this year, the Australian Transaction Reports and Analysis Centre (AUSTRAC) appointed an external auditor to examine whether the mint complies with anti-money laundering and counter-terrorism financing laws, has an ongoing customer due diligence program, and has the obligation to report suspicious matters.

Tonkin, speaking at the Diggers 'n' Dealers mining conference, mentioned that the Perth Mint can safely, efficiently, and effectively purchase and refine gold for NST's gold company. The Perth Mint is exceptionally important for NST or the Australian gold industry, and the federal government needs to carefully handle its ownership issues. Additionally, Genesis Minerals Managing Director Raleigh Finlayson supports the government taking over the Perth Mint. Finlayson stated that Perth is not just a refinery but also a significant player in the Australian gold industry,

In April, Bill Johnston, the Minister for Mines and Petroleum of Western Australia, announced that the government would spend 1 million Australian dollars on an independent review of Perth and its ownership structure. Johnston stated at the time, that the poor financial return of the mint was a factor for reviewing its ownership. The assessment will consider options to reduce national risks, including regulatory, financial, and other risks, and ensure the value of retaining ownership of gold companies is preserved.

Earlier this year, the chairman of the Perth Mint, former Rio Tinto boss Sam Walsh, stated that Perth would learn from past mistakes and is strengthening its governance. Walsh made these remarks before the LBMA's investigation results showed that the Perth Mint's gold refining process met standards, but its management system needed improvement.

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