Maxam Company Limited, has been fined $6 million following its role in the explosion that occurred at Apiate near Bogoso in the Western Region.

Contained in a statement issued by the Minister of Lands and Natural Resources, Samuel Abu Jinapor, in breaking down the figures, he revealed that it has been agreed after extensive discussions with Maxam that the company will pay to the government, the cedi equivalent of $5 million at the “prevailing commercial rate”. Additionally, he explained that considering the nature and totality of the circumstances leading to the tragic incident, he 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, on Maxam”, totalling the fine of $6 million.

“For the avoidance of doubt, the total amount payable by Maxam to the Government stands at six million United States dollars (US$6,000,000.00) or its tech equivalent at the prevailing commercial rate”.
Samuel Abu Jinapor

The statement emphasized that Maxam shall pay the fine of $1 million or its cedi equivalent at the commercial rate before the restoration of its permit to manufacture, store, supply and transport explosives. It suggested that given the “demonstrable cash inflows” of Maxam and its current circumstances, the remaining $5 million shall be paid in eighteen equal monthly instalments, beginning from 1^st March, 2022 to 1^st August, 2023.

Mr Jinapor in the circular noted that following the incident, the Minerals Commission, which is the regulator of the mining industry, conducted its investigations, and submitted its report to him. He intimated that given the “complexity” of the matter regarding the explosion, the ministry constituted a three-member Committee chaired by 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”.

According to Mr Jinapor, on Tuesday, February 1, 2022, the three-member Committee submitted its report and upon a review of the report, the Ministry established “regulatory breaches” on the part of Maxam Ghana Limited 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 to ten thousand United States dollars (US$10,000)”.
Samuel Abu Jinapor

Conditions set out for Maxam

To ensure the restoration of Maxams operating permit, the Lands Minister spelt out fourteen conditions to be met by the company. The measures include a ban on the transportation of Ammonium Nitrate and Fuel Oil (ANFO) on a public road to a mine or civil work site unless expressly permitted by the Chief Inspector of Mines.

Other measures include explosives being guarded by two escort vehicles, one in front and one at the back, both having sirens to warn people about the explosives. Similarly, the company is to notify the Chief Inspector of Mines of its intention to transport explosives, forty-eight hours before the scheduled transportation. The statement expressed that mine inspectors are equally to inspect every transportation to ensure that all regulations and protocols are complied with.

The Minister emphasized that the fourteen measures are to apply fully to all companies involved in the manufacture, supply, transportation and use of explosives.