13 deaths confirmed in Apiate explosion
Lands Minister announces sanctions against MAXAM
The Minister for Lands and Natural Resources, Samuel Abu Jinapor, has announced the imposition of sanctions against mining explosives manufacturing company, MAXAM Ghana Limited in relation to the explosion incident at Apiate on January 20, 2022.
In a release dated Monday, January 7, 2022, the Minister stated that the findings of a three-member committee established to investigate circumstances surrounding the incident, indicted MAXAM for regulatory breaches in the transportation of some explosives from its plant at Iduapriem to Chirano Gold Mines leading to the accident.
Consequent to the findings, Mr Jinapor said an administrative fine of a cedi equivalent of United States $1 million has been imposed on MAXAM at the prevailing commercial rate.
In addition, the company is to pay another $5 million fine to the government of Ghana, bringing the total fine to $6 million United States dollars.
“On Tuesday, February 1, 2022, the three-member Committee submitted its report. Upon a review of the two reports, the Ministry has established regulatory breaches on the part of Maxam Ghana Limited (hereinafter referred to as MAXAM) in respect of the manufacture, storage and transportation of explosives for mining and other civil works. These breaches, per L.I. 2177, attract fines ranging from six hundred cedis (GHc600.00) to ten thousand United States dollars (US$10,00O).
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“Nonetheless, having regard to the nature and totality of the circumstances leading to this tragic incident, I, as the Minister responsible for Lands and Natural Resources, and, therefore, the overseer of activities in the sector, have imposed an administrative fine of the cedi equivalent of one million United States dollars (US$1,000,000.00), at the prevailing commercial rate, on Maxam. In addition to the fine, it has been agreed, after extensive discussions with Maxam, that the company will pay to the Government, the cedi equivalent of five million United States dollars (US$5,000,000.00) also at the prevailing commercial rate. For the avoidance of doubt, the total amount payable by Maxam to the Government stands at six million United States dollars (US$6,000,0O0.00) or its cedi equivalent at the prevailing commercial rate,” the release stated.
According to the minister, the administrative fine of $1 million is to be paid by MAXAM before the restoration of its operating license which was suspended in the aftermath of the Apiate accident.
The remaining $5 million fine according to the minister is to be paid in 18 months in installments of $277,777.78 monthly payments.
In addition, the Minister has also outlined a list of measures as condition precedent for the restoration of MAXAM’s operating license for the manufacturing, storing, transporting and supplying of mining explosives in the country.
On Thursday, January 20, 2022, a truck transposing explosive material— Ammonium Nitrate and Fuel Oil (ANFO) - from MAXAM Ghana Limited's explosives plant, located at Iduapriem, Tarkwa in the Western Region, to Chirano Gold lines Limited's site in the Western North Region, exploded, causing extensive damage to life and property.
Some thirteen (13) persons are reported to have died from the incident, with some one hundred (100) people injured, with several others rendered homeless due to the impact of the explosion which brought down, or structurally weakened, almost all houses in the Apiate community.
Read the full release by the ministry below:
