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The government of Ghana has fined mining company, Maxam Company Limited has been punished for the recent explosion that occurred at Appiatse, a mining community in the Western Region.
The company has fined cedi equivalent of US$6,000,000 at the prevailing commercial rate for regulatory breaches in respect to manufacture, storage and transportation of explosives for mining.
This is made up of an administrative of the cedi equivalent of one million United States Dollars (US$1,000,000.00), at the prevailing commercial rate and cedi equivalent of five million United States Dollars(US$5,000,000.00) at the prevailing commercial rate.
The Ministry of Lands and Natural Resources in a press release dated February 7,2022 stated that the fine is as a result of a report from a three-member committee led by Mr. Benjamin Aryee, a former Chief Executive Officer of the Minerals Commission which found the mining company guilty of some regulatory breaches.
According to the ministry, the report, submitted on February 1, 2022 showed that Maxam Co. Limited breached manufacture, storage and transportation regulations and that led to the explosion at Appiatse.
The statement indicated that the breaches, per L.I.2177, attract fines ranging from six hundred cedis (GHC600.00) to ten thousand United States Dollars (US$10,000)
However, looking at the nature and circumstances that led to the tragic incident, the Minister has imposed an administrative fine of the cedi equivalent of one million United States dollars (US$1,000,000.00) at the prevailing commercial rate.
“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 the activities in the sector have imposed an administrative of the cedi equivalent of one million United States Dollars (US$1,000,000.00), at the prevailing commercial rate on Maxam.”
The one million dollars fine is to be paid before the company’s permit to manufacture, supply, store and transport explosives is restored.
The second amount of five million dollars will be paid in monthly installments for eighteen months starting on the 1st of March, 2022 to 1st August, 2023.
The company will pay an amount of two hundred and seventy seven thousand, seven hundred and seven US dollars and seventy eight cents (US$277,777.78) or its cedi equivalent at the prevailing commercial rate from March 1, 2022 and every other first day of the month constituting the eighteen months.
The Ministry also included some conditions the mining company has to meet before its permit to operate is restored.
The conditions to be met by the mining company include its inability to transport explosives unless a 48-hour notice has been given to the chief inspector of mines or the regional mines inspector.
The company must also have an inspector of mines present to verify, inspect and log designated explosives for transportation.
The Ministry of Lands and Natural Resources added that the measures prerequisite for Maxams permit restoration is applicable to all other companies operating in Ghana in the manufacture, supply, transportation and use of explosives.
It included that, regulatory breaches and sanctions against Jocyderk Logistics Limited and Arthanns Enterprise and Transport Service, who were also involved in the tragic incident are being reviewed and would be communicated and applied in due course.
On Thursday, 20th January 2022, a truck transporting Ammonium Nitrate and Fuel Oil (ANFO) from Maxam Ghana Limited’s explosive plant caught fire and exploded.
The explosion blew Appiatse community into pieces.
Thirteen persons reportedly died with hundreds sustaining injuries.
