December 02, 2008

US ditches zinc penny for steel version

It is reported that the US House voted to bring back the steel penny, saying it would be cheaper than the current practice whereby the government loses money on every penny it makes because of rising zinc prices.

The chamber approved legislation directing the US Mint to begin producing, within the next nine months, pennies made of copper plated steel not the zinc copper alloy currently used.

The measure also recommends phasing in steel nickels over the next two years.

Democrats, who noted that the government produced steel pennies during the Second World War when copper demand was high, said the plan would save USD 1 billion over the next decade.