Contract mining: Here are government’s 3 new measures to protect mineworkers

The Ministry of Lands and Natural Resources has announced three additional safeguards to protect workers’ wages, benefits and conditions of service as mining companies transition from owner mining to contract mining.

The measures require the Minerals Commission to prevent deterioration in workers’ employment conditions, harmonise remuneration across the mining industry value chain and categorise eligible mining contractors according to their capacity to provide mining-related services.

In a statement signed by the Ministry’s Director of Communications, Zambaga Rufai Saminu, the government said the measures were intended to guide the effective implementation of Ghana’s contract mining policy while safeguarding workers’ rights and welfare.

The Minerals Commission has been directed to complete the processes required to implement the measures and submit the necessary documents for approval by November 30, 2026.

Three new safeguards

The Ministry outlined the following measures:

1. Protection of wages, benefits and conditions of service

The Minerals Commission must 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 because of the transition from owner mining to contract mining.

The government has also affirmed that workers employed under contract mining arrangements should enjoy salaries, wages, allowances, benefits and other incentives equivalent to those applicable to owner mining workers performing comparable work before the transition.

1. Harmonisation of salaries and conditions of service

The Commission is required to take the necessary steps to harmonise salaries, wages and conditions of service across the mining industry value chain.

The measure is intended to address concerns raised by the Ghana Mineworkers Union, human resource experts and other stakeholders about the potential impact of the transition on workers’ remuneration and welfare.

1. Categorisation of eligible mining contractors

Eligible contractors must be categorised according to their capacity to provide mining-related services.

The Ministry said the new measures supplement existing regulatory requirements and do not prevent the Minerals Commission from taking further lawful action to advance the objectives of the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (LI 2431).

Government responds to stakeholder concerns

The additional safeguards follow consultations involving the Ministry, the Minerals Commission, the leadership of the Ghana Mineworkers Union, industry experts and other relevant stakeholders.

The Ministry said the engagements had clarified the regulatory and policy basis of the contract mining directive and reaffirmed the government’s position that workers must not be disadvantaged by its implementation.

“The Ghanaian contract mining worker shall enjoy salaries, wages, allowances, benefits and other incentives equivalent to those applicable to an owner mining worker performing comparable work before the transition to contract mining,” the statement said.

The Ministry acknowledged concerns about the possible unintended effects of the transition on salaries, wages and conditions of service, although it noted that most multinational mining companies operating in Ghana had successfully transitioned their operations to comply with the local content requirement.

Local content requirements remain in force

Under the policy, indigenous Ghanaian companies are required to undertake contract mining for surface mining operations.

For underground operations, contract mining must be undertaken through a partnership in which a Ghanaian-owned company holds at least a 50 per cent interest.

The requirement was incorporated into the sixth edition of the Local Procurement List, effective January 1, 2025, pursuant to LI 2431.

The Ministry said the experience of multinational mining companies that had transitioned to comply demonstrated that the local content requirement was practicable and enjoyed broad industry support.

Government warns against unfair labour practices

The Ministry also warned against conduct that could undermine local content objectives or operate to the detriment of Ghanaian workers.

It said the government would maintain “ZERO TOLERANCE” for unfair labour practices, cartelisation, bid rigging, fronting and any other conduct that undermines genuine Ghanaian participation or harms workers.

The statement said the government, under President John Dramani Mahama’s Reset Agenda, remained committed to fairness, transparency, genuine Ghanaian participation and the protection of workers across the mining industry value chain.

The Minerals Commission is expected to conclude the necessary implementation processes and submit the requisite documents for approval by November 30, 2026.