NO.041

ROYAL AUSTRALIAN MINT

The Treasurer announced today that the Government would provide the Royal Australian Mint with funding for its capital equipment and working capital requirements.

An operational review of the Mint in 2002 found that while it was a successful coin manufacturing business, with reported profit of $1.412 million for 2001-02, it needed additional funding to maintain this position.

The Mint is to be provided with $9.5 million over the next 4 years to replace its ageing coin presses. This will substantially improve the efficiency of the Mint, resulting in significant cost savings.

The Mint will also be provided with up to $4 million as a once-off injection of working capital. This will provide greater transparency in the financing of the Mint’s daily operations than the current ad hoc arrangements for the retention of seigniorage.

Contacts: Niki Savva

Office of the Treasurer

(02) 6277 7340