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Maxam Company Limited, the mining services contractor, involved in the unfortunate disaster that occurred at Appiatse in the Bogoso District of the Western Region, has been fined $6m.

A statement signed by the Minister for Lands and Natural resources, Abu Jinapor said the fine must be paid before the restoration of its permit.

It may be recalled that the company's license was revoked after the explosion.

According to a statement, "Consequently, the Hon. Minister for Lands and Natural Resources, Samuel A. Jinapor, MP, has, as of 21st January 2022, directed the Chief Executive Officer of the Minerals Commission to interdict the Chief Inspector of Mines with immediate effect, pending the outcome of the ongoing investigation into the tragic events which took place at Appiate.

"Further, the Hon Minister has directed the Chief Executive Officer of the Minerals Commission, with immediate effect, to suspend the registration of Maxam Company Limited with the Minerals Commission, thereby precluding the company from the manufacture, transportation, and/or supply of explosives for mining operations," the statement added.

In a similar statement on Tuesday, 8/2/2022, the sector Minister said: “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 repo., 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 (GI-1000.00) to ten thousand United States dollars (US$10,000).

“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 (US$6,000,000.00) or its tech equivalent at the prevailing commercial rate.

“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. 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 installments, beginning from 1. March, 2022 to 1. August, 2023.”