Maxam Company Limited, the company whose mining truck was involved in the Appiate disaster, has been fined 6 million dollars.
This follows the death of 13 persons in a huge explosion at Apiate, a town between Bogoso and Bawdie in the Western Region on Thursday 20th January 2022.
The explosion occurred when a motorcycle collided with a vehicle carrying explosives to a mining site on Thursday, 20 January 2022.
Apart from the deaths, the explosion destroyed several domestic and commercial properties.
Some residents of the area who were unhurt had to run for their lives.
In a latest development, the Minister of Lands and Natural Resources, Samuel Abu Jinapor has in a statement dated Tuesday February 8, revealed that the fine was reached after a three-member Committee constituted to investigate the matter came up with its findings.
According to the statement, Maxam shall pay the fine of one million United States dollars (US$1,000,000.00) or its cedi equivalent at the prevailing commercial rate before the restoration of its permit to manufacture, store, supply and/or transport explosives.
Per the statement given the demonstrable cash inflows of Maxam and their current circumstances, the remaining five million United States dollars (US$5,000,000.00) shall be paid in eighteen (18) equal monthly instalments, beginning from 1. March, 2022 to 1. August, 2023.
“Following the incident, the Minerals Commission, the regulator of the mining industry, conducted its investigations, in accordance with the Minerals and Mining (Explosives) Regulations, 2012 (L. I. 2177), and submitted its report to me. Given the complexity of the matter, I constituted a three-member Committee, chaired by a highly reputable former Chief Executive Officer of the Minerals Commission, Mr. Benjamin Aryee, to carry out independent investigations to corroborate, or otherwise, the findings of the Minerals Commission.
“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 (GHC 600,00) to ten thousand United States dollars (US$10,000).
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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 (US56,000,000.00) or its tech equivalent at the prevailing commercial rate,” excerpts of the statement said.
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