* New products likely to be launched in 2nd half of 2016
* Still appetite for another gold futures contract -Perth Mint (Adds comments from Perth Mint official, background)
By A. Ananthalakshmi
SINGAPORE, Nov 26 (Reuters) - The Perth Mint will work with ASX Ltd ASX.AX to develop precious metals derivatives that will be traded on the Australian exchange, the companies said on Thursday.
ASX will provide the platform and clearing services for the contracts, while the Perth Mint - operator of one of the biggest refineries accredited by the London Bullion Market Association - will provide the physical metal and storage facilities.
The new products, the first of which is expected to be launched in the second half of 2016, will likely face stiff competition for liquidity as the region has seen a host of new bullion products in the last year, including by the CME Group CME.O and Intercontinental Exchange (ICE).
"We are looking at a gold futures contract to start with," said Bron Suchecki, the Perth Mint's manager of analysis and strategy.
Despite the presence of several gold contracts in the region, there is still an appetite for another one, he said.
Top consuming region Asia has seen a flurry of gold contracts in recent years. ICE launched a one-kilogramme gold futures contract earlier this month, while CME launched a similar kilobar contract in January. The Singapore Exchange and the Shanghai Gold Exchange launched contracts in 2014.
The Asian contracts were started with the aim of creating a regional benchmark price amid a push in London - hub for over-the-counter gold trading - for more transparency.
"The initial feedback is positive," Suchecki said, adding that the mint and ASX would aim to attract physical dealers, commodity traders and major banks, particularly market-makers.
If the contract gains enough liquidity, it would develop naturally as a benchmark, he said.
The derivatives products will provide market participants with a transparent and relevant forward price curve, enabling them to more effectively hedge their risk exposures, Perth Mint said in a separate statement.
For ASX, the products would mark its entry into precious metals. In commodities, it already offers grains and energy derivatives.