MAXAM to pay $6 million fine for Apeate explosion

The government, through the Ministry of Lands and Natural Resources, has imposed a fine of $6 million on Maxam Ghana Limited, the company at the centre of the explosion that occurred at Apeate, in the Prestea Huni-Valley Municipality of the Western Region.

The tragedy resulted in the death of 13 people, with several others wounded and the entire community razed by fire to the ground.

A press release signed by the sector minister, Samuel A. Jinapor, said out of the $6 million fine, $1 million must be deposited before the restoration of the company’s licence. The remaining $5 million is expected to be paid in equal installments between March 1, 2022, and August 2023.

The statement said the fine was imposed based on the report submitted by the three-member committee constituted by the Minister to undertake independent investigations into the disaster.

The report affirmed some regulatory breaches on the part of the company in the manufacture, storage and transportation of explosives for mining and other civil works.

“Although the penalties for the said breaches, pursuant to L.I. 2177, ranges between GH₵6000.00 to USD$10,000), the minister imposed the hefty fine due to the nature and the totality of the circumstance leading to this tragic incident,” said the statement.

Conditions/measures

Additionally, the Minister has set out 14 conditions to be met by the company before the restoration of its operating permit.

“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,” part of the statement read.

The company is to also notify the Chief Inspector of Mines of its 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.

The Minister emphasised that the 14 measures are to apply, fully, to all companies involved in the manufacture, supply, transportation, and use of explosives.

The statement further noted that all sanctions against Jocyderk Logistics Limited and Arthanns Enterprise and Transport Services, two entities involved in the Apeate tragic incident, were being reviewed, and would be applied and communicated in due course.

“The Ministry is putting in place the necessary measures to ensure that mining and mine support services, are conducted in a safe and healthy environment that poses no danger to life or property,” it concluded.

MAXAM’s response

Meanwhile, in a swift response after the Minster’s press statement, Maxam said based on a different interpretation of the law, it did not believe it committed any regulatory breaches.

The company, however, noted in a statement that to ensure the continuity of its business, and to be able to serve its customers and protect the employment of its workers, it would pay the fine imposed by the Minister.

Maxam said it agreed to pay the additional $5million due to its commitment to Ghana and its welfare. The company has also pledged to ensure full compliance with the new regulatory measures announced by the Minster to ensure that its operations are in accordance with the laws of Ghana and international best practices.