The Royal Australian Mint has churned out billions of coins since it opened half a century ago in 1965, a mere year before Australia ditched British pounds and pence for dollars and cents.But, as more and more of the country goes cashless, the Canberra institution's core function of producing our coins is now making up a shrinking part of its operations.This past financial year has been one of the most tumultuous so far, with the number of coins produced by the Mint more than halving – from 110 million in 2022-2023 to just 47 million in the 12 months to June 2024.
As the demand for cash reduces, the Mint is looking towards its future. (iStock)That fell spectacularly short of the 128 million coins the Mint predicted it would make in the last financial year, and was caused by a sharp fall in demand from the banks.Leigh Gordon, the Mint's chief executive, told 9news.com.au that while there had undeniably been a drop-off in demand for coins, circulation figures suggested the decrease was not quite as dramatic as the numbers suggested."We estimate about 100 million pieces (coins) were consumed last year, demanded out of the broader system," Gordon said."And so, while there was a reduction, I don't think it was quite as big as those raw numbers from the mix indicate."A key event last year was a merger between Australia's two largest cash transport companies, Armaguard and Prosegur, which allowed for the number of depots containing coin stores to be decreased.This meant the banks could eat into those coin reserves, instead of ordering more from the Mint, Gordon said.Ebay vendor wants $10,500 for this Aussie coin – is it worth it? View GalleryThis financial year, the Mint has budgeted a production target of 62 million coins, Gordon said, and was so far exceeding those numbers.Nevertheless, the Mint is now looking towards its future."One of the core services we provide at the Mint is as the manufacturer of circulating coins to meet the demands of the banks, and that's the key public value that we deliver," Gordon said. "We're thinking about, how are we going to keep doing that to meet the requirements for as long as the government wants it, and the people want it."Research conducted by the Mint showed consumer sentiment towards cash was still positive, and Australians wanted it to remain in the payment system mix, Gordon said."Some people aren't that confident of relying on digital systems. They're also considering outages and the resilience of the digital system," he said.If passed, the Albanese government's planned cash mandate, announced in November, will require businesses to accept cash as payment for groceries, fuel and other essentials, and secure a future need for coins.
Royal Australian Mint chief executive Leigh Gordon said sentiment towards cash is still positive. (Alex Ellinghausen)But, with the demand for coins likely to continue falling, the Mint is now leaning towards other key growth areas, including collectible and foreign coins."We have recognised there's been a reduction in the use of circulating coins and cash, and so we have been looking to grow our collectible and investment activities, which have been quite successful, but also included within that is foreign circulating coins," Gordon said.As well as our own coins, the Mint produces coins for many of Australia's Pacific neighbours who do not have their own mints, including Papua New Guinea, Timor Leste, Vanuatu, Samoa and the Cook Islands.And, unlike local currency, the number of foreign coins produced by the Mint has been increasing.In the last financial year, the Mint made 73.3 million foreign coins, superseding the number of Australian coins it produced for the first time."Last year was certainly the biggest number that I could find for foreign circulating coins," Gordon said. "It's really important work for us, not just financially, but we also recognise the importance to the communities and societies of those nations."Collectible coins, such as the popular Bluey $1 coins, have also proven to be a hit, and, after a gallery upgrade, 350,000 visitors walked through the Mint's doors last financial year.
Where do all the coins go?
Sharply reduced as it is, 47 million coins entering Australia's cash mix still seems excessive, given many people no longer use cash at all.So, what happens to all of those coins?They are certainly not wearing out, with the average lifespan of a coin sitting at about 30 years."I do think a lot of them go into jars," Gordon said."I'm sure that they're sitting around in consoles and on shelves."I know that some of the institutions overseas are looking at how they can get more of their coins back into circulation, rather than sitting around."Â Anecdotally, Gordon said he had been told by a recycler that every car they crushed contained a few dollars, and every railway carriage about $60 in cash.Then, there's always the back of the couch.
