THE government announced yesterday that the Bank of Nova Scotia will be the new brokers for the Guyana Gold Board (GGB). Minister of Natural Resources and the Environment, Raphael Trotman, at a post-Cabinet briefing said the Japanese company, Mitsui, which had acted as broker for the GGB for decades, has gone out of the gold-trading business as of last December.
He said that due to the Japanese company exiting the market, it became necessary to source a new broker. “The Guyana Gold Board utilised the services of a consultant to pursue the services of a new broker, and after due process, the Bank of Nova Scotia was deemed suitable to provide the service of broker to the Guyana Gold Board.”
Cabinet, he said, gave its “no-objection” to the appointment of the Bank of Nova Scotia to act as broker, and has granted permission for the bank to carry out brokerage functions for an initial period of six months.
Asked to state the proposed annual cost for the service, Trotman said the charge is “very small” and that the total expense would be about US$1.50 per ounce.
“So, it would not be based on an annual charge, but based on the volume of gold sold,” he said.
Asked, meanwhile, for an update on the functioning of the task force created to address the issue of gold-smuggling, the minister said the members of the task force which was created last year have not met for 2016, but has not been disbanded.
He said that since it came into being, the task force has worked along with the Ministry of Public Security and the Special Organised Crime Unit (SOCU) to frontally address the issue of gold-smuggling.
“The task force is in review mode, and as is needed, it will convene, but we do exchange documents, reports, correspondence,” stated Trotman.