Government sets November 30 deadline for contract mining safeguards

The government has set November 30, 2026, as the deadline for the Minerals Commission to complete processes required to implement additional safeguards under Ghana’s contract mining policy.

The measures are intended to protect workers’ wages, benefits and conditions of service as mining companies transition from owner mining to contract mining.

In a statement issued by the Ministry of Lands and Natural Resources and signed by its Director of Communications, Zambaga Rufai Saminu, the government said the Minerals Commission must complete the necessary processes and submit the requisite documents for approval by the deadline.

The additional directives follow concerns raised by the Ghana Mineworkers Union, human resource experts and other stakeholders about the potential effects of the transition on workers’ salaries, wages and conditions of service.

The Ministry said it had been engaging the Union’s leadership, industry experts and other relevant stakeholders to clarify the regulatory and policy basis of the contract mining directive and address concerns about workers’ welfare.

Three measures to protect workers

Under the new directives, 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 in wages, emoluments, entitlements, benefits or conditions of service because of the transition.

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

Additionally, eligible contractors are to be categorised according to their capacity to provide mining-related services.

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

Local content requirements remain in force

The government reiterated that 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 formally incorporated into the sixth edition of the Local Procurement List, effective January 1, 2025, under LI 2431.

According to the Ministry, most multinational mining companies operating in Ghana have successfully transitioned their operations to comply with the local content requirement.

“The successful transition undertaken by the majority of multinational mining companies demonstrates that the local content requirement is practicable and enjoys broad industry support,” the statement said.

However, the Ministry acknowledged concerns that the transition could have unintended consequences for workers’ remuneration and conditions of service.

It said consultations with stakeholders had reaffirmed the government’s position that workers must not be disadvantaged by the implementation of the policy.

Government warns against unfair practices

The Ministry warned that the government would not tolerate unfair labour practices, cartelisation, bid rigging, fronting or other conduct that undermines local content objectives or operates to the detriment of Ghanaian workers.

It said the measures were part of the Reset Agenda under President John Dramani Mahama, aimed at promoting fairness, transparency, genuine Ghanaian participation and worker protection throughout the mining industry value chain.

The Ministry said the additional safeguards would strengthen the implementation of the contract mining policy while ensuring that the transition did not come at the expense of workers’ welfare.

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