Ghana Fortifies Mining Sector: New Policies Safeguard Workers Under Contract Mining

The government of Ghana, through the Ministry of Lands and Natural Resources, has announced a firm deadline and additional safeguards to protect mineworkers' wages, benefits, and conditions of service. This initiative comes as mining companies transition from owner mining to contract mining, a move that raised concerns among various stakeholders. The Minerals Commission has been tasked to complete all necessary processes for implementing these measures and submit the requisite documents for approval by November 30, 2026.

These new directives follow extensive consultations involving the Ministry, the Minerals Commission, the Ghana Mineworkers Union leadership, human resource experts, and other relevant stakeholders. The engagements clarified the regulatory and policy basis of the contract mining directive and reinforced the government's unwavering position that workers must not be disadvantaged by its implementation. The Ministry, in a statement signed by its Director of Communications, Zambaga Rufai Saminu, unequivocally stated that "no worker shall be rendered worse off as a consequence of its implementation."

Three core measures have been outlined to safeguard workers' welfare:

Firstly, the Minerals Commission is required to ensure that no worker engaged, or to be engaged, by a mining contractor or similar service provider suffers any deterioration or reduction in wages, emoluments, entitlements, benefits, or conditions of service due to the transition. Importantly, the government has affirmed that workers employed under contract mining arrangements should receive salaries, wages, allowances, benefits, and other incentives equivalent to those applicable to owner mining workers performing comparable work before the transition.

Secondly, the Commission must take the necessary steps to harmonise salaries, wages, and conditions of service across the entire mining industry value chain. This measure aims to address the concerns about potential disparities in remuneration and welfare that could arise from the shift to contract mining.

Thirdly, eligible contractors are to be meticulously categorised according to their capacity to provide mining-related services. This categorisation will help ensure that only capable and compliant contractors are engaged, further securing worker conditions.

Beyond worker protection, the government also reaffirmed its commitment to strengthening local content requirements within the mining sector. Indigenous Ghanaian companies are mandated to undertake contract mining for surface mining operations. For underground operations, contract mining must be executed through partnerships where a Ghanaian-owned company holds at least a 50 per cent interest. This requirement was formally integrated into the sixth edition of the Local Procurement List, which became effective on January 1, 2025, under the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (LI 2431).

The Ministry highlighted that most multinational mining companies operating in Ghana have successfully transitioned their operations to comply with these local content requirements, demonstrating their practicality and broad industry support. This successful transition serves as evidence that the policy objectives are achievable without compromising operational efficiency.

Furthermore, the government issued a stern warning against practices that could undermine local content objectives or harm Ghanaian workers. It declared "ZERO TOLERANCE" for unfair labour practices, cartelisation, bid rigging, fronting, or any other conduct that undermines genuine Ghanaian participation in the mining industry. These measures are integral to President John Dramani Mahama’s "Reset Agenda," which champions fairness, transparency, genuine Ghanaian participation, and the comprehensive protection of workers across the mining industry value chain. The additional safeguards are designed to strengthen the implementation of the contract mining policy, ensuring local participation and safeguarding the rights and welfare of mineworkers.