MAXAM has been slapped with a $6 million fine over the Apiate explosion
Three-member committee presents findings on Apiate explosion to lands minister
13 deaths confirmed in Apiate explosion
Lands Minister announces sanctions against MAXAM
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 exploded, causing extensive damage to life and
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The truck was said to have been transferring the explosives to Chirano Gold Mine Limited's site in the Western North Region.
Some thirteen (13) persons are reported to have died from the incident, with some about one hundred (100) people injured, and several others rendered homeless due to the impact of the explosion which brought down, or structurally weakened almost all houses in the Apiate community.
There were immediate concerns following the explosion about negligence or otherwise of MAXAM in the transporting process that the resulted in the explosion.
The Minister for Lands and Natural Resources, Samuel Abu Jinapor who is responsible for regulating the mining sector through the minerals commission in his initial response to the accident, directed the suspension of the operating license of MAXAM.
In his defense of the directive, the minister said it was necessary to ensure managing the possibility of another occurrence while establishing facts surrounding the incident.
Notwithstanding an earlier investigation conducted by the Minerals Commission into the incident, the Minister further established a three-member committee to investigate the accident.
The committee chaired by former Chief Executive Officer of the Minerals Commission, Mr Benjamin Aryee submitted its findings and recommendations to the minister on Tuesday, February 1, 2022.
The minister having reviewed the committee’s report and the investigations of the Minerals Commission on Monday, January 7, 2022, announced that MAXAM has been found to have breached regulations in respect of the manufacture, storage and transportation of explosives for mining and civil works.
While not being explicit about the specific breaches MAXAM was found to have committed, the minister in his release emphasized the requirements of the Minerals and Mining Act, 2006 (ACT 703) and the Minerals and Mining (Explosives) Regulations, 2021 (L.I. 2177).
The minister noted that while the regulation sets the fine for breaches related to the specified laws between GHC600 and USD$10,000, he had come to the conclusion of imposing a $6million fine on MAXAM owing to the nature and totality of the circumstances leading to the tragic incident which resulted in the loss of 13 lives.
“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 minister stated.
MAXAM, according to the minister, is required to outrightly pay $1 million of the fine as a condition precedent for the restoration of its license while the remaining $5 million is to be paid in $277,777 monthly instalments over a period of 18 months.
The minister for lands and natural resources has specified that the imposition of the fine on MAXAM does not recuse the company from further criminal or civil liabilities emanating from the explosion incident.
“MAXAM shall, therefore, pay to Government, 1st March, 2022 and on every first day of each month, until final payment, an amount of two hundred and seventy-seven thousand, seven hundred and seventy-seven United Sates dollars and seventy-eight cents (USD277,777.78) or its cedi equivalent at the prevailing commercial rate.
“The imposition of the fine and agreed sum to be paid, is without prejudice to any criminal or civil liability MAXAM may be subject to,” the minister specified.
Further to the fine, the Minister for Lands and Natural Resources, Samuel Abu Jinapor has outlined 14 stringent measures as a prerequisite for the restoration of MAXAM’s operating license.
The minister again pointed that two other companies involved in the incident – Jocyderk Logistics Limited and Arthanns Enterprise and Transport Services are being reviewed for regulatory breaches and possible sanctions which will be communicated in due time.
The conduct of officials of the Minerals Commission and others are also being reviewed for actions.
“Regulatory breaches and possible sanctions against Jocyderk Logistics Limited and Arthanns Enterprise and Transport Services, the two entities involved in this tragic incident, are being reviewed, and will be applied and communicated in due course. Additionally, the conduct of officials of the Minerals Commission and/or related officials in the matter are being reviewed, and further action will be taken where necessary,” parts of the statement said.
