The US Mint suspended its Mutilated Coin Redemption Program a little over a year after restarting the plan, a move that concerns the Institute of Scrap Recycling Industries (ISRI).
The US Mint, a part of the of the Treasury Department, reinstated the program at the end of 2017 after it was suspended in 2015 following an investigation into alleged irregularities involving the program.
ISRI lobbied to resume the program when it was suspended before as scrap recyclers held on to mutilated coins. The coins could not be melted down as its illegal to destroy currency.
"It is a major disappointment the Mint has once again suspended the program that is worth millions of dollars to the recycling industry," ISRI said today.
The Mint said on its website it "has temporarily ceased applications and material submitted to its Mutilated Coin Redemption Program pending the development of additional Program safeguards."
When the program was resumed, the Mint announced revisions including procedures for certifying participants based on submission amounts and frequency, sampling submissions to authenticate material, conducting site visits and requiring information about how coins became bent or partial. The reinstatement of the program was considered a "major victory" for the recycling industry.
"ISRI, on behalf of its members, is working to identify any issues the Mint may have with the program and will once again offer solutions to get the program reinstated as soon as possible," the Washington DC-based institute said.
The scrap industry acquires coins when used automobiles, vending machines, coin-operated laundry machines and other sources are shredded and the material are separated, ISRI said.
