Urgent.News

What's breaking now, across thousands of outlets.

Business

No mineworker should suffer under contract mining policy – Government

The government has assured mineworkers that no employee should suffer a reduction in wages, benefits or conditions of service as mining companies transition from owner mining to contract mining. The Ministry of Lands and Natural Resources says workers employed by mining contractors must receive salaries, wages, allowances, benefits and other incentives equivalent to those enjoyed […]

No mineworker should suffer under contract mining policy – Government

The Ministry of Lands and Natural Resources has reassured Ghanaian mineworkers that their wages, benefits, and working conditions will remain unchanged when mining companies shift from direct ownership to contract mining arrangements. This assurance is part of broader policy measures the government has implemented to address concerns about the potential negative impact of the transition on workers' compensation and welfare.

In a statement, the Ministry clarified that workers employed by mining contractors must receive salaries, wages, allowances, benefits, and incentives that are equivalent to those of owner mining employees performing similar tasks prior to the transition. This assurance was made after consultations with the Ghana Mineworkers Union, human resource experts, and other stakeholders to understand their concerns regarding the possible effects on workers' remuneration and welfare.

To enforce these safeguards, the government has tasked the Minerals Commission with ensuring that no worker engaged by a mining contractor suffers a deterioration or reduction in wages, emoluments, entitlements, benefits, or conditions of service due to the transition. The Commission has also been instructed to harmonize salaries, wages, and conditions of service across the entire mining industry value chain.

The government has reaffirmed its commitment to local content requirements in contract mining. Under these policies, Ghanaian-owned companies are required to lead surface mining operations, while underground mining must be conducted through partnerships where Ghanaian-owned companies hold at least a 50% stake. These requirements were incorporated into the sixth edition of the Local Procurement List, which came into effect on January 1, 2025.

Most multinational mining companies operating in Ghana have successfully transitioned their operations to comply with these local content requirements, demonstrating that the measures are practical and have industry support. However, the government acknowledges that these transitions have raised concerns about potential impacts on workers' pay and conditions, which prompted further consultations and the introduction of additional safeguards.

The government has explicitly warned against practices that undermine local content objectives or disadvantage Ghanaian workers, specifically targeting unfair labour practices, cartelisation, bid rigging, fronting, and other conduct that could hinder genuine Ghanaian participation in the mining sector. President John Dramani Mahama's Reset Agenda remains a guiding principle, with the government committed to fairness, transparency, genuine Ghanaian participation, and the protection of workers throughout the mining industry value chain.

Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Also reported by 2 other outlets

Read the original at myjoyonline.com →

More in Business

More from Wednesday 21 October →