The Lands and Natural Resources Ministry has defended the $6 million fine imposed on Maxam Company Limited, the firm at the centre of the Appiate explosion.
Per the Mining Regulations, the penalties for the said breaches range between $600,000 to $10,000. This means Maxam could have just been fined $10,000.
However, government has slapped the company with a $6 million fine.
The fine has attracted mixed reactions from industry players.
In an interview with Citi News, the Deputy Minister of Lands and Natural Resources in Charge of Mines, George Mireku Duker said the ministry is not being heavy-handed but rather took into consideration the gravity of the incident.
“We are looking at other experiences, and we believe that it is fair, within the domain, as far as the intensity of the incident is concerned.”
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George Mireku Duker also indicated that there would be far-reaching consequences on Maxam if management fails to pay the fine within the 18 months grace period.
“The consequences are clear. We have already directed them to pay monthly instalments of not less than $277, 777.6 monthly. They are to do this before their license will be restored.”
Meanwhile, Maxam Ghana Limited, has insisted that it never breached safety regulations in the transportation of explosives.
It was however quick to declare its commitment to pay the government’s $6 million fine.
The government earlier suspended the license of Maxam Ghana Limited days after its truck transporting explosives to Chirano Gold Mines was involved in a huge explosion, resulting in the death of 13 persons.
The government subsequently imposed a $6 million fine on the company, together with a set of measures to comply with, as a condition to the restoration of its permit.
