The Ministry of Lands and Natural Resources has fined Maxam Company Limited, whose vehicle was involved in the fatal explosion which flattened the Apiate town in the Western Region, a sum of $6 million.
The announcement was contained in a comprehensive release signed by the sector minister, Samuel A. Jinapor.
The minister’s action followed the submission of a report by a three-member committee on Tuesday, February 1, 2022, empanelled to independently carry out “investigations to corroborate or otherwise, the findings of the Minerals Commission.”
The sector ministry’s fine and other actions are propelled by “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,” the release said.
Although the breaches as per L.I. 2177, attract fines ranging from six hundred cedis to ten thousand United States dollars, the minister stated that given the circumstances leading to the 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 equivalent of one million United States Dollars (US1,000,000), at the prevailing commercial rate, on Maxam.”
In addition to the fine, the release points out that, following extensive discussions with the company “the company will pay to Government, the cedi equivalent of five million United States dollars (US$5,000,000.00) also at the prevailing commercial rate.”
The minister explains though that “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 equivalent at the prevailing commercial rate.”
Restoration Fee
Before the restoration of the company’s permit to
“manufacture, store, supply and or transport explosives, Maxam shall pay a fee of one million US dollars.”
Installment Payment
Maxam, shall according to the minister, pay the amount of US$5,000,000.00 in eighteen equal monthly installments beginning from March 1, 2022 to August 1, 2023.
As per the foregone, Maxam shall, the minister went on, “pay from March 1, 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 (USD277,777.78) or its cedi equivalent at the prevailing commercial rate.”
The minister was quick to add however that, the fine and agreed sum to be paid is without prejudice to any criminal or civil liability the company may be subject to.
Measures To Comply With
The ministry has also imposed a set of measures to be complied with by the company.
The company shall not transport explosives on public roads unless notice is given the Chief Inspector of Mines or the Regional Mines Inspector forty eight hours before the scheduled time for transportation.
An inspector of mines/explosives shall be present, inspect, verify and record in the designated explosives log book for transportation, that all the requisite safety requirements are adhered to.
There shall also be a physical inspection of the explosives of the truck to ensure that the explosives truck is in good working condition in accordance with the truck examination list and that, the driver has a professional driver’s licence.
Also, all trucks carrying explosives for the company shall have red flashing lights clearly visible at least 100 meters away, siren and automatic fire suppression system alongside fire extinguishers.
Also required, among others, shall be a megaphone to warn people or bystanders in case of danger and drive cameras to monitor the explosives drivers.
Escort
Trucks, according to the minister, shall have two escorts, one leading the truck and the other at the rear at least fifty metres or sixty metres from the vehicle, with a uniformed and armed police officer, and the other behind the truck maintaining a distance of at least twenty metres and at most, thirty metres with an unarmed but informed police officer.
The minister added “for the avoidance of doubt, the above set of measures will apply, fully to all other companies operating in Ghana in the manufacture, supply, transportation and use of explosives.
Committee Of Inquiry
The minister also announced the setting up of a committee of inquiry last Monday to undertake a general review of the health and safety regime in the mining industry, review the existing laws, regulations and guidelines on health and safety standards in the mining industry. The committee, which has one month to complete its work, shall make recommendations to government for reforms.
On Thursday, January 20, the country was struck with news about a truck carrying what the minister said were explosive materials, ammonium nitrate exploding following an accident at Apiate near Bogoso.
News about the incident resonated across the world via the international news networks. The truck originated from Tarkwa in the Western Region and was heading for the Chirano Gold Mines site in the Western North Region when the incident occurred. Thirteen persons lost their lives and besides injuries sustained by many, the incident left others homeless.
Maxam’s Response
Maxam Ghana Limited, in response to the minister’s directives, stated that none of the breaches were the cause of the tragic road accident, adding that, “all of them relate to the transport carried out by Arthaans Logistics.”
The company said “based on a different interpretation of the applicable regulations, we believe that Maxam has not committed any of those breaches, however, to ensure the continuity of the business, and to be able to supply our customers, Maxam has decided to pay the fine and will comply with the measures of the Ministry of Lands and Natural Resources.”
The company further stressed that “given our commitment to Ghana and its welfare, Maxam has agreed to the payment of additional five million United States Dollars or its cedi equivalent.”
The company expressed sadness by the incident and extends sympathy to the country and members of the Apiate community for the loss of lives, property and livelihoods.
It said the explosives were being transported in a vehicle owned by a subcontractor, Arthaans Logistics, adding that Maxam has an unblemished record of supplying explosives to the mining industry in Ghana and neighbouring countries.
By A.R. Gomda