What does the government do with mutilated coins?

Brian R. writes: Is there a website where I can find out information about what the US Federal Reserve Banks/Mints do with the coins that are deemed as “Unfit” or “Mutilated”? I know that they are destroyed, but I am wondering if there is anywhere I can find out how the coin is destroyed and what is done with the coins once they are destroyed. I know that the Federal Reserve Notes are shredded, but I can’t find any information on what happens to Unfit or Mutilated Coin.

The US Treasury has a service by which they redeem mutilated coins. Mutilated coins are coins that have been bent, clipped, defaced or just worn out where they are no longer acceptable in the normal course of commerce.

Last time I checked the Treasury pays 80% of face value for the coins. The coins are then melted and the alloys extracted and recycled. Contact the U.S. Treasury in Washington D.C.