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The explosives manufacturing company at the centre of the Appiatse explosion, Maxam Ghana Limited, has reluctantly agreed to pay a hefty fine of US$6 million imposed on it by the sector minister, Samuel Abu Jinapor.
In a statement issued by the company on Tuesday, February 8, 2022, shortly after the Minister for Lands and Natural Resources communicated the imposition of the fine to the public, Maxam said, although the breaches found by the Minister did not cause the incident, the company has decided to pay the fine and comply with the measures imposed on it.
The fine followed an explosion which occurred on Thursday January 20, 2022, when a truck carrying explosives from Maxam’s Iduapriem plant in Tarkwa to Chirano Gold Mines Ltd, was involved in a crash, leading to the death of thirteen (13) people and the destruction of the entire Appiatse community.
In a six-page Press Release issued on Tuesday February 8, 2022 to update the public on the incident, the Minister said after reviewing two reports of the incident submitted by the Minerals Commission and a three-member committee he constituted to conduct independent investigations into the matter, the Ministry established some regulatory breaches on the part of Maxam in respect of the manufacture, storage and transportation of explosives.
The Statement further stated that although the regulatory breaches attract fines ranging between GH₵600 and US$10,000, the Minster imposed the US$1 million fine due to “the totality of the circumstances surrounding the tragic incident.”
In addition to the fine, Maxam has also agreed with the Government to pay an additional amount of US$5 million bringing the total amount payable by Maxam to US$6 million.
Mr. Jinapor’s statement further listed a set of ten conditions to be complied with by Maxam before the restoration of their licence to operate.
However, in the swift response to government’s decision, Maxam said based on a different interpretation of the law, they did not believe they committed any regulatory breaches.
That notwithstanding, to ensure the continuity of their business, and to be able to supply their customers and protect the employment of their workers, they will pay the fine imposed by the Minister.
Maxam has also according to their statement agreed to pay the additional US$5 million due to their commitment to Ghana and its welfare.
The company further pledged to ensure full compliance with the new regulatory measures announced by the Minster to ensure that their operations are in accordance with the laws of Ghana and international best practices.
