Appiate Explosion: Government imposes $6m fine on Maxam Ghana Limited

The Ministry of Lands and Natural Resources has fined Spanish Company, Maxam Ghana Limited, $6 million for regulatory breaches in the Appiate Explosion that happened last month.

In a statement, the Ministry said Maxam’s license will only be restored after the company has paid $ 1 million dollars of the fine.

The Ministry has also directed that the additional $ 5 million fine be paid in 18 month installments from March 1, 2022.

“Maxam shall, therefore, pay to Government, on Ist 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 States dollars and seventy-eight cents or its cedi equivalent at the prevailing commercial rate,” it said.

Maxam Ghana Limited was the company transporting the explosives to the Chirano gold mine when the fatal Appiate-Bogoso explosion happened. At least 14 people died, about 179 wounded, and 500 homes got destroyed.

The company was subsequently suspended from mining operations on January 21, while a committee conducted investigations into the incident.

The Ben Aryee chaired Committee that presented its report to the Minister on February 1, was charged to among other things, ascertain whether or not the Minerals and Mining Explosives Regulations LI 2177, section 107 and 105 were complied with by the Mining Company.

Aside the fine, the Ministry has also set 14 conditions to be met by the company before restoring their operating permit.

Among these are that the company is to notify the Chief Inspector of Mines of their intention to transport explosives 48 hours before the scheduled transportation, and mine inspectors are to inspect every transportation to ensure that all regulations and protocols are complied with.

These measures, the Ministry said also apply to other mining companies operating in Ghana in the manufacture, supply, transportation and use of explosives.

The statement also added that sanctions against Jocyderk Logistics Limited and Arthanns Enterprise and Transport Services, two entities involved in the Appiatse tragic incident, are being reviewed and will be applied and communicated in due course.

The government has additionally instituted a Ministerial Committee chaired by Prof. Richard Amankwah, the Vice Chancellor of the George Paa Grant University of Mines and Technology, to review mining laws, regulations, and recommend reforms to the goverment.

“The Committee has one month from Monday 7th February, 2022, to present its report, and submit recommendations to Government for reforms,” it said.