Maxam Limited Suspension: Gov’t to lose $1.7m weekly in royalties
Chief Executive Officer of the Ghana Chamber of Mines, Suleman Koney, has disclosed that government will lose approximately $1.7 million in royalties every week if the suspension on the operations of Maxam Company Limited is not lifted.
Operational activities of Maxam Company Limited – the company believed to be the transporter of the explosives that caused the Appiatse explosion – was suspended by the Minerals Commission last week.
The suspension was due to the explosion at Appiatse in the Bogoso area of the Western region in which a vehicle belonging to the company and carrying explosives sparked, claiming about 14 lives.
Following which, a directive from the Lands and Natural Resources Ministry ordered that the company’s registration with the Minerals Commission be suspended.
“Further, the Hon. Minister (Samuel Jinapor) has directed the CEO of the Minerals Commission with immediate effect, to suspend the registration of Maxam Company Limited with the Minerals Commission.
Read: Forex Auction: BoG rejects $214 million bids from buyers
“Thereby precluding the company from the manufacture, transportation and /or supply of explosives for mining operations, pending the outcome of the investigations into this matter,” read parts of the statement issued by the Ministry.
Speaking on the suspension of Maxam Company Limited, Mr. Koney asserted that the country will lose a lot if Maxam is not assisted to resume operations.
According to him, most mining companies that receive a supply of explosives from Maxam may have to cut production if moves to get Maxam to resume supply is not fast-tracked.
He, therefore, called for the fast-tracking of investigations on the explosion incident in order for the company to resume operations since most of the mining firms are running out of stocks.
“Out of the calculations we did as a Chamber, we realised that a lot of revenue will be lost, at least to the tune of $1.75 million in royalties per week. If this is for royalties alone, then you can imagine the other forms of taxes and levies mining firms may have to pay after production and its impact on government revenue.”
“I can tell you it’s really a big blow to the industry and government; trust me, most of the companies are on the verge because stocks may be running out and without explosives, we cannot blast or do any major mining activities,” he said.
The Appiatse explosion incident is currently under investigation by the relevant agencies to ascertain its cause.
.
