Royal Canadian Mint To Trim Profits, Keep Nickel

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OTTAWA - - " Upcoming changes to the Royal Canadian Mint's mandate will allow the federal government to save millions when paying to produce and distribute loonies, toonies and other circulation coins for use in the Canadian market.

The mint, which is required by law to conduct its businesses "in anticipation of profit," currently charges the Department of Finance for the production and distribution of circulation coins. The corporation made $152.5 million from Canadian circulation in 2012 - - " almost six per cent of its total yearly revenue of $2.6 billion, according to its latest annual report.

But last week's federal budget proposes changes to the mint's mandate to "align its activities with the government's objective of ensuring a cost-effective supply of coins for Canadians."

Finance spokesman Jack Aubry confirmed in an email that the changes will "clarify that the mint's mandate to mint coins in anticipation of profit does not extend to the production of Canadian circulation coins."

He said the mint's mandate to pursue profit will "continue to apply to all other business lines" and that there are no plans to privatize the mint's operations, eliminate the nickel or make other changes to Canadian currency in an effort to balance the books by 2015.

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In 2012, the mint netted $40.7 million in pre-tax profit and paid a dividend of $10 million to the federal government, its sole shareholder. The government also received $133 million in seigniorage, the difference between the value of the money and the cost to produce it.