Sustainability at the Coin Conference

Last month, we reviewed the Coin Conference held in Amsterdam in October. Alongside the main programme was a seminar dedicated to sustainability. This heard from the Bank of Portugal, four mints (US, UK, Canada and Finland) and two suppliers, Artazn and Spaleck, on their environmental work.

Here we report on the Bank of Portugal, the US Mint, and draw specific environmental actions from the UK and Canadian mints (see CMN October for the Mint of Finland’s recent activities).

Portugal’s sustainability activities

The Bank of Portugal (BdP) is pursuing three streams of work – optimisation of the coin lifecycle, recycling materials and renewable energies.

Coin life cycle – the ECB requires euro coin processing through sampling. Since 2014 all coins lodged at the BdP are required to have already been checked for authenticity and fitness, using predefined packaging by those sending them in. As a result, the BdP only checks those coins on a sample basis.

For low denomination coins (1 cent to 20 cents), the quantity declared is checked by weighing the bags or boxes. For 50 cents to €2, the procedure includes individual authenticity and quality checks. In the event that anomalies following the referred checks are identified, the entire lodgement is checked. This approach significantly reduces the work and resources involved.

The ECB encourages central banks to exchange coins between themselves. In 2016, the BdP created an option for credit institutions and CIT companies to register coins surpluses using the BdP’s IT platform for withdrawals and lodgements. The platform can then be used by participants to arrange swaps without the BdP’s intermediation. This makes the coin cycle more efficient and allows a reduction in the number of coin transfers.

In 2017, the BdP started a strategy to gradually reduce its euro coins surplus through bilateral agreements with other member-states to send euro coins of excess coin stocks in Portugal abroad and to receive euro coins in greater demand in return. The benefits are the avoidance of destroying fit euro coins and minting fewer new coins, and all the transportation and other costs this would involve.

The BdP has also delivered coins directly to a private cash centre rather than going through a branch of the BdP first. This happened in Funchal in the Madeira islands, where a CIT company cash centre required a large volume of euro coins. This approach saved 20 movements between the BdP’s branch and the CIT company.

Recycling – in 2021 the BdP determined that the packaging materials used in the delivery of euro banknotes and coins to the central bank should be recyclable and also, preferably, reusable.

Procurement – the BdP is studying the possibility of including the need to present an environmental certificate for suppliers of cash packaging materials.

Renewable energy – in 2020 a new energy contract was concluded for all the BdP’s buildings, except for the regional delegations of Azores and Madeira, providing the supply of 100% renewable energy. This measure enabled the BdP to guarantee 98% renewable electricity consumption in 2020. The BdP is planning the installation of solar panels in its main cash centre, covering the entire parking area of the complex. It is expected that part of the electricity produced could be used in storage and cash processing related activities.

The US Mint sustainability work

David Croft, Associate Director of Manufacturing at the US Mint, neatly summarised the actions taken by the US Mint at its Denver, Philadelphia, San Francisco and West Point facilities, along with the Washington DC site.

Renewable energy – Denver and Philadelphia are moving to using 100% renewable energy. Denver is already there, and Philadelphia is in the process of switching.

Energy reduction – the current vehicle fleet is being replaced with electric vehicles and charging points are being installed at all sites. West Point and San Francisco are converting all lighting to LED.

Chrome plating – the US Mint has moved completely to Physical Vapor Deposition (PVD) coated dies for hexavalent chrome plating. One benefit is that the Philadelphia, West Point and San Francisco mints no longer need Title 5 operating permits for the use of lead chromate.

Manufacturing investment:

• New, more efficient blanking and stamping presses have been installed at all of the mints.

• A contract has been awarded to upgrade the existing blank furnaces with more efficient burners and heat capture technology. In addition, the furnace atmosphere will be changed to eliminate any potential emission of carbon monoxide gas. An initial prototype is being installed in the Denver Mint.

• While not available outside the US, the US Mint has successfully applied for Energy Saving Performance Contracts (ESPC) for electrical and water saving projects at Denver and Philadelphia. ESPCs are an alternative financing mechanism authorised by the US Congress designed to accelerate investment in cost effective energy conservation measures in existing federal buildings. The Denver projects will generate $18.4 million and the Philadelphia projects $22 million over the next 22 years.

• All mints have installed low-flow water devices and replaced burnishing equipment with equipment that uses less water. Denver and San Francisco have added xeriscape landscaping so that their grounds do not need irrigation.

Recycling – when it comes to recycling raw materials, all of the base metals are recyclable and all of the mints’ current suppliers are able to do this.

RCM’s alloy recovery programme

Since 2004 the Royal Canadian Mint (RCM) has recovered 2.5 billion coins, some 10,000 tonnes of alloy. It has done this through a three stage Alloy Recovery Programme (ARP).

The advantage of ARP is that it acts as a filtering system to maintain the integrity of the system by removing damaged coins and foreign contaminants from system.

It also ensures that coins in circulation have a consistent electro magnetic signal, which is important to enable devices that automatically handle coins (eg. vending machines) to authenticate coins.

TRM focuses on procurement 

The Royal Mint’s (TRM) presentation included its procurement work, a theme shared with the Mint of Finland. TRM follows public sector procurement legislation which includes UK Procurement Policy Note 06/20, which requires central government authorities to allocate at least 10% of their contract award decision on ‘Social Values’.

In a recent high-value procurement exercise TRM weighted its contract award criteria on quality (60%), price (30%), and social value (10%). This required bidders to present social value and sustainability proposals as part of their bid, making clear the direct social, environmental, economic and cultural benefits that would be delivered as part of a contract award.

TRM’s sustainability priorities include reducing emissions, developing a circular economy, reducing waste, supporting British craftsmanship, diversity and inclusivity, local communities, and improving supply chain transparency.

69 expressions of interest resulted in 32 formal responses, from which five were shortlisted and four went on to present proposals.