Perth Reports Gold Coin Sellout - Australia Gold

The Perth Mint reported May 12 that its bullion sales are “on a golden run” with the sellout of the 30,000 mintage of its 1-ounce Year of the Tiger gold bullion coin.

The popular release is one of eight gold bullion coins released as part of the 2010 Australian Lunar Coin Series II. Offering buyers a choice of eight sizes from 1/20-ounce to a huge 10 kilos, each gold coin portrays a design of a tiger’s head.

Interest in the annual Australian Lunar Series II has been very strong since it was launched in 2008, according to the mint. Both the 2008 1-ounce Year of the Mouse and 2009 1-ounce Year of the Ox gold bullion coins also sold their full 30,000 mintages.

“That’s a lot of gold!” said Ron Currie, sales and marketing director. “Like other mints, we benefitted from the dramatic pick-up in gold bullion during the world financial crisis. Since then our objective has been to maintain sales at a much higher level than pre-WFC. We’ve had a close look at our production and international distribution strategy with the result that we’re now much better placed to satisfy demand.”

The Perth Mint recently announced that it had taken a 100 percent interest in Australia’s only gold refinery, it would be complementing its secure storage hub for bullion in the U.S. with a new facility in Europe and that it has plans for a new online distribution channel.

Resource profits tax threatens birthplace of the gold rush

THE Rudd government's proposed mining tax threatens to halt planned expansions around Coolgardie, the birthplace of West Australian goldmining, according to the manager of the only working mine still in the town.
Peter Williams, chief operating officer at Focus Minerals, says the company has big plans for its Three Mile Hill operations, just outside the town of 1500 people where the first WA gold rush began 118 years ago.

But not if the resource super-profits tax comes in. "There are projects we're looking at that will only be viable because of current high gold prices -- those certainly wouldn't go ahead with the uncertainty of the new tax, or if it was introduced in its current form," Mr Williams said.

"Until we find out what the implications of this are, we won't be starting any new projects."

According to a recent KPMG study, the implications for the gold industry are dire.

In a study commissioned by the Minerals Council of Australia, KPMG modelled the effect of the tax on a typical new project.

The study shows those planned gold projects that have operating costs in the most expensive three-quarters of the industry become economically unviable.

Mr Williams said Focus, which recently spent $20 million upgrading its Coolgardie mill and has plans to spend $12m on a drilling program to help it expand, would be hit hard by the tax. "We certainly wouldn't be expanding the way we are planning to," he said.

Gold was found in Coolgardie in 1892, sparking a gold rush -- the centre became Kalgoorlie, 38km to the west.

Mr Williams said the uncertainty over the tax was already starting to affect exploration in the West Australian goldfields region. "We are finding it easier to get drill rigs than we did a month ago," he said.

"There is a bit of a downturn in exploration -- people are holding their breath and waiting to see what is going to become of this."

Like most small miners, Mr Williams sees little appeal in the RSPT's proposal to refund 40 per cent of failed projects.

"Very few projects actually collapse because it is rare those that are marginal enough to do so are approved," he said.

Source: http://www.theaustralian.com.au/business/mining-energy/resource-profits-tax-threatens-birthplace-of-the-gold-rush/story-e6frg9do-1225874745729