Land Minister announces sanctions against MAXAM Ghana Limited
Several people injured in Apiate explosion
Mining explosives manufacturing company, MAXAM Ghana Limited, has been fined an amount of $6 million.
This was announced by the Minister for Lands and Natural Resources, Samuel Abu Jinapor in a press release sighted by GhanaWeb.
According to the Lands Minister, MAXAM Ghana Limited, per reports from the 3-member committee set up to investigate the explosion, breached some regulations in connection to the transportation of the explosives from its plant at Iduapriem to Chirano Gold Mines.
The imposition of sanctions, according to the lands minister was in accordance with L.I. 2177.
It would be recalled that there was an explosion at Apiate in the Western region on January 20, 2022 that led to the loss of lives and several injured.
It happened when a truck transporting explosive material— Ammonium Nitrate and Fuel Oil (ANFO) from MAXAM Ghana Limited's explosives plant at Iduapriem in the Western region to Chirano Mines exploded at Apiate after an accident.
In a press release sighted by GhanaWeb, the land minister said, “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)."
“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.
Samuel Abu Jinapor noted that MAXAM Ghana Limited can only receive its operating license after it pays the administrative fine of $1 million out of the $6 million.
The company has 18 months to pay the remaining $5 million in instalments [$277,777.78 monthly]
The mining explosives manufacturing company had its license revoked after the Apiate incident in January this year.
Read the minister's press release below:
MAXAM Ghana Limited