Perth Mint to review audit processes after conflict gold reports

The Perth Mint will review its audit process after allegations emerged it had purchased hundreds of millions of dollars worth of 'conflict gold' earlier this week.

In an investigation published by the Australian Financial Review this week revealed allegations the government-owned gold refiner bought gold from Papua New Guinea miners long criticised for using child labour and mercury, in breach of its ethics policy.

Perth Mint chief executive Richard Hayes.

The allegations included that the refiner had purchased gold from a convicted killer and it had ignored concerns raised by staff.

The mint reiterated it did not believe it had done anything wrong but would begin an independent review of its audit processes.

"We remain confident that we comply fully with all regulatory requirements and the responsible gold guidelines set out by the global gold industry’s governing bodies," Perth Mint chief executive Richard Hayes said late on Friday.

"Consistent with our commitment to ethical, robust and best practice processes we will initiate an independent third party review of our audit processes.

"The review will also assess our arrangements with licensed counterparties which may deal with artisanal small-scale mining."

Mr Hayes said the mint took environmental, social and governance reporting seriously and was vigilant in its assessments of the companies from which it sourced gold and other metals for processing.

"For many years The Perth Mint has led change to improve transparency and compliance within the gold industry," he said.

"We have actively assisted regulators in their endeavours to address corrupt practices, including GST fraud in the broader gold refining sector. We remain committed to continuous improvement."

Conflict minerals are mined via unsafe practices in conflict-ridden countries and are often used to fund violent armed groups, which use the riches to secure strategic trading routes.

With Marta Pascual Juanola.