London gold executive says Perth Mint 'well regarded', two years after damaging reports

Australia Broadcast Center

06-06-2025

A high-ranking executive from the London-based World Gold Council says the Perth Mint remains "well regarded" internationally, two years after its reputation as a refiner was questioned over the "doping" of gold bars.
An investigation by the ABC's Four Corners revealed the mint sold gold to China that met broader industry standards of 99.99 per cent pure gold, but not stricter standards for silver content at the Shanghai Gold Exchange.
It also uncovered governance failures by the WA government-owned Gold Corporation relating to anti-money laundering laws, which prompted a federal parliamentary inquiry of the 126-year-old mint, resulting in 10 recommendations last year.
Perth Mint chairman Sam Walsh took responsibility for "historical shortcomings" when the mint's annual report was tabled in state parliament in September, noting 60,000 customer records had been remediated as part of a $34 million government program to improve anti-money laundering processes.
In light of the mint's recent history, the ABC asked the World Gold Council's chief strategy officer, Terry Heymann, who visited Kalgoorlie and Perth this week for the premiere of a new documentary about WA gold mining, if its international reputation had been damaged.
"I'm not going to comment specifically on the details, but the Perth Mint is very well regarded, as indeed is ABC Refinery (in Sydney)," he said.
"Australia has two leading refineries and that really gives confidence to the market that the gold coming out of those refineries is to the expected standard, both in terms of the quality, the purity of the gold and responsible sourcing."
Mr Heymann said the responsible sourcing of gold remained a focus of the World Gold Council, adding that "there is always room for continuous improvement".
The Perth Mint's reputation was restored somewhat in March when it was appointed by the London Bullion Market Association (LBMA) as a refinery referee — one of just seven across the globe responsible for quality control of the world's precious metals.
The accreditation process took several years and will make the mint responsible for assessing the standards of third-party refiners.
"It speaks to the quality of our products," Perth Mint CEO Paul Graham told the ABC in March.
"It's something we're very proud of and it places us among the most trusted refiners globally.
"We're the only ones in the southern hemisphere who have achieved the referee appointment."
Mr Graham replaced Jason Waters in November 2023 after his predecessor acknowledged issues around the diluted gold it supplied to China were "damaging and unacceptable".
But Mr Graham denied gold bars had intentionally been diluted or "doped", claiming the media had "misrepresented what the Perth Mint has been doing historically".
"The bars are never 100 per cent pure," he said.
"I think what was reported around doping, which is a very unfortunate term, isn't necessarily correct."
Mr Graham said it was common practice to top up bars with silver or base metals, such as copper.
"What we try and do at the Perth Mint is get as close as we can to that 100 per cent," he said.
"We believe today that our bars are as pure as any, if not the purest in the market, where we're currently getting bars out at to the tune of 99.996 purity.
"The bars that were in question previously were around the 99.992 or 99.993 mark, so we have improved through technology and our focus, but we never believed we were intentionally doping the bars under the standards."
Meanwhile, the Perth Mint has reported strong demand for its product as the Australian dollar gold price continues to trade at record highs.
It soared above $5,000 an ounce for the first time in April — the same week US President Donald Trump announced his "Liberation Day" tariffs.
The Perth Mint sold 43,714 ounces of gold and 723,641oz of silver in April, up from 40,537oz of gold and 713,306oz of silver in March.
Demand softened in May when the mint sold 28,244oz of gold and 496,707oz of silver.
The mint's depository held 308,899oz of gold at the end of May — equivalent to 9.61 tonnes — worth more than $1.5 billion at current prices.
Mr Heymann described gold as an "economic safe harbour", saying the metal had "proven security and resilience".
He said US economic policies were only one factor in a perfect storm that also included conflicts in Ukraine and the Middle East.
"You look at the sustained demand that there is for gold, so much of that being underpinned by central banks around the world, who have had unprecedented levels of buying," he said.
"Why are they buying gold? It gives them confidence in helping to manage the financial security of the countries they're responsible for.
"Of course, government policies, including the US, play into that but there's no one specific indicator that drives the gold price.
"It is a reflection of what's going on around the world."