The government has issued additional directives to safeguard the salaries, wages, benefits and conditions of service of mineworkers as mining companies transition from owner mining to contract mining.
The Ministry of Lands and Natural Resources, in a press release dated October 21, 2026, said the measures were intended to ensure that the implementation of Ghana’s contract mining policy did not leave workers worse off.
Under the new directives, the Minerals Commission is required to ensure that no worker engaged by a mining contractor or a similar service provider suffers any reduction in wages, emoluments, entitlements, benefits or conditions of service as a result of the transition.
The ministry said the government was committed to protecting workers’ welfare while advancing local participation in the mining industry.
The directive follows concerns raised by the Ghana Mineworkers’ Union, human resource experts and other stakeholders about the potential impact of the transition on workers’ remuneration and employment conditions.
The Ministry of Lands and Natural Resources explained that Ghana’s contract mining policy requires indigenous Ghanaian companies to undertake contract mining for surface mining operations.
For underground mining operations, the policy requires a partnership arrangement in which a Ghanaian-owned company holds at least a 50 per cent interest.
According to the ministry, the requirement was incorporated into the sixth edition of the Local Procurement List, which took effect on January 1, 2025, in accordance with the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431).
The ministry said the majority of multinational mining companies operating in Ghana had successfully transitioned their operations to comply with the requirement.
It argued that the progress made by these companies demonstrated that the local content requirement was practicable and had received broad support within the industry.
The government, however, acknowledged that the transition could have unintended consequences for workers, particularly regarding salaries, wages, allowances and other employment benefits.
In response to the concerns, the ministry said it had been working with the Minerals Commission to engage the leadership of the Ghana Mineworkers’ Union, industry experts and other relevant stakeholders.
The consultations were intended to clarify the regulatory and policy basis of the contract mining directive while addressing concerns about the potential deterioration of workers’ conditions of service.
The ministry said the engagements had reaffirmed the government’s position that no worker should be disadvantaged financially or in terms of employment conditions because of the transition.
It added that workers employed by Ghanaian contract mining companies should receive salaries, wages, allowances, benefits and other incentives equivalent to those enjoyed by owner mining workers performing comparable duties before the transition.
The government’s position is intended to ensure that the increased participation of indigenous Ghanaian companies in mining does not come at the expense of workers’ welfare.
To enforce the safeguards, the government has directed the Minerals Commission to implement three additional measures.
First, the commission must ensure that workers employed, or to be employed, by mining contractors and similar service providers do not suffer any deterioration in their remuneration, entitlements, benefits or conditions of service because of the shift from owner mining to contract mining.
Second, 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 promote greater consistency in employment standards within the sector, particularly for workers performing comparable duties under different operational arrangements.
Third, the commission must categorise eligible contractors according to their capacity to provide mining-related services.
The categorisation is expected to guide the participation of contractors in the industry in line with their operational capabilities.
The ministry stressed that the new measures were supplementary to existing regulatory requirements and did not prevent the Minerals Commission from taking any further lawful action necessary to achieve the objectives of L.I. 2431.
The Minerals Commission has been directed to complete all processes required to implement the additional measures and submit the necessary documents for approval by November 30, 2026.
The deadline places responsibility on the commission to translate the government’s policy directives into the appropriate implementation arrangements.
The ministry did not specify in the statement the precise enforcement mechanisms or penalties that would apply to contractors found to be in breach of the worker protection requirements.
However, it made clear that the government expected the commission to ensure compliance with the directives and the broader local content framework.
The Ministry of Lands and Natural Resources also warned that the government would not tolerate practices that undermine local content objectives or disadvantage Ghanaian workers.
It said the government’s Reset Agenda, under President John Dramani Mahama, would be guided by zero tolerance for unfair labour practices, cartelisation, bid rigging, fronting and other forms of misconduct within the mining industry.
Fronting, in this context, refers to arrangements in which a Ghanaian company is presented as the operator or beneficiary of a contract while the actual control or benefit rests with another party in a manner that undermines local participation requirements.
The government’s warning signals its intention to ensure that the contract mining policy results in genuine Ghanaian participation rather than arrangements designed merely to satisfy regulatory requirements.
It also underscores the importance of transparency and fair competition in awarding and executing mining contracts.
Ghana’s contract mining policy seeks to increase the participation of indigenous companies in mining operations, particularly in surface mining, while establishing a significant Ghanaian ownership interest in underground mining partnerships.
The additional directives seek to address concerns that changes in operational arrangements could affect workers’ earnings and employment conditions.
By requiring the protection of existing remuneration and benefits for comparable work, the government is seeking to ensure that the transition advances local participation without weakening labour protections.
The success of the measures will depend on the Minerals Commission’s implementation of the directives, the compliance of mining contractors and the effectiveness of monitoring arrangements across the industry.
The ministry said the government remained committed to fairness, transparency, genuine Ghanaian participation and the protection of workers throughout the mining industry value chain.
The commission is expected to submit the necessary documents for approval by November 30, 2026, as the government moves to strengthen safeguards under the contract mining policy.
By 1960news.com
