For the first time ever, South Africa is producing and exporting stainless steel circulation coins for use as currency in foreign countries.
The use of stainless steel as coinage material continues to increase around the world, particularly in developing countries. Columbus Stainless has been involved in the development of the local stainless steel coinage market for more than 20 years. While South Africa does not have any stainless steel coin denominations, it exports stainless steel coins and blanks.
Kelpar was established in 1998, and focuses on coinage areas not addressed by the South African Mint. The company manufactures coin blanks in stainless steel, aluminium, brass, coinage bronze and other non-ferrous materials for direct export, or for striking by the Mint or other related industries, mainly for export.
Stainless coinage has paid its dues
Small change, big profit
Kelpar MD, Gerhard van Deventer, supports the use of stainless steel coinage. “The end user must perceive the coin to be of value. In this context, the durability of the coins plays a major role. Areas such as wear resistance, resistance to tarnishing and corrosion resistance make stainless steel the ideal choice of material as it meets all these criteria,” says Van Deventer.
The company has been awarded two large contracts for the supply of stainless steel coins and blanks this year – the supply of 105-million coin blanks to the National Bank of the Ukraine, and three million 25c coins to the Seychelles.
Columbus supplied 220 t of 1-mm-thick grade 430 stainless for the production of the coin blanks for the Ukraine order. The Seychelles order required 1,37-mm-thick grade 430 stainless, and Columbus again supplied the 12,5 t required. The producer supplies Kelpar with the cold-rolled material, slit to the required width. The latter’s production line has the capacity to produce 5 000 blanks a minute, with a capacity of 200 tons a month.
Tarnish resistance
Gerhard van Deventer and Colin Barnes
The tarnish resistance of coinage material is often considered as one of the most crucial factors in material specification, due to the perception that a shiny coin is a quality coin. Stainless steel has an excellent resistance to tarnishing, and the coins have been found to have acceptable surface shine after several years in circulation.
Columbus industry development manager, Colin Barnes, says there are numerous advantages to using stainless as coinage material. These include low cost and price stability, as it is not affected by the volatility in the price of alternative alloys. The public accepts the concept of value, as it provides a superior appearance and feel by retaining its mint condition. It is durable and corrosion-resistant, as it does not oxidise, nor is it affected by the climate. Stainless also has excellent wear resistance, and the production route for stainless coins is much shorter than plated coils, resulting in significant cost-savings.
The development of stainless coinage in South Africa started in 1979 between Columbus (then Middelburg Steel & Alloys) and the South African Mint. “It is very gratifying, after such a lengthy development period, to see South Africa supplying stainless coins to countries around the world,” says Barnes.
Coinage market is big bucks
The coinage market continues to show significant growth, particularly in Third World countries’ low-denomination coins. It is estimated that the size of the market could increase from 10 000 tons to 15 000 tons a year. Research has revealed that 14 countries make use of stainless coins, a total of 67 denominations. These include Albania, Bangladesh, Bolivia, Brazil, India, Italy, Madagascar, Paraguay, Turkey and Vatican City.
“After considering the numerous characteristics required for low-value coinage, stainless can be ranked as the most suitable material for the currency of the future,” concludes Van Deventer.
