Government sets November 30 deadline for safeguards under contract mining policy

The government has vehemently stated that no mineworker should experience a decline in wages, benefits or working conditions as the mining sector shifts from state-owned entities to contract mining arrangements. The Ministry of Lands and Natural Resources has emphasized that workers employed by mining contractors must receive compensation, wages, allowances, benefits and other perks equal to those enjoyed by employees in state-owned mining operations.

This assurance is part of a broader suite of policy measures unveiled by the Ministry to steer the execution of Ghana’s contract mining policy and alleviate worries regarding its potential ramifications on workers. In a statement penned by the Ministry’s Director of Communications, Zambaga Rufai Saminu, the government disclosed that it had taken into account the apprehensions voiced by the Ghana Mineworkers Union, human resource experts and other stakeholders regarding the potential fallout of the transition on workers' earnings and welfare.

Both the Ministry and the Minerals Commission have been engaging in dialogues with the Union’s leadership, industry experts and other pertinent stakeholders. These consultations have clarified the regulatory and policy foundation of the directive and reaffirmed the government’s stance that workers must not be placed at a disadvantage under the new framework.

The Minerals Commission has been mandated to ensure that no worker, either currently employed or to be hired by a mining contractor or similar service provider, suffers any diminution or degradation in wages, emoluments, entitlements, benefits or working conditions due to the transition. The Commission has also been directed to harmonise salaries, wages and working conditions across the entire mining industry.

Furthermore, eligible contractors are to be categorized based on their ability to offer mining-related services. The Ministry emphasized that these measures complement existing regulatory requirements and do not preclude the Minerals Commission from taking further lawful actions to advance the objectives of the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (LI 2431).

The Commission is expected to finalize the requisite processes to implement these measures and submit the required documentation for approval by November 30, 2026. The government has also reinforced the local content provisions governing contract mining in Ghana. Pursuant to the policy, surface mining operations are to be undertaken by Ghanaian-owned companies, while underground mining must be conducted through partnerships in which Ghanaian-owned entities hold a minimum of 50% interest.

This requirement was embedded in the sixth edition of the Local Procurement List, which came into effect on January 1, 2025, in line with LI 2431. The Ministry asserted that most multinational mining firms operating in Ghana have successfully adapted their operations to align with the local content mandate, citing this as evidence that the requirement is feasible and enjoys widespread industry backing.

However, the Ministry acknowledged that the transition has sparked concerns about potential impacts on workers' pay and working conditions, prompting additional consultations and the introduction of extra safeguards. The Ministry emphasized that unfair labor practices, cartelization, bid rigging, fronting and other conduct detrimental to genuine Ghanaian participation in the mining industry will not be tolerated.

Under President John Dramani Mahama's Reset Agenda, the government reaffirmed its commitment to fairness, transparency, genuine Ghanaian participation and the protection of workers throughout the mining sector value chain. The additional measures aim to ensure that the implementation of the contract mining policy fosters local participation while safeguarding the rights, remuneration and well-being of mineworkers.