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Don’t Shortchange Mineworkers Under Contract Mining – Lands Ministry Directs

The government has directed the Minerals Commission to ensure that mineworkers do not suffer cuts in wages, benefits or conditions of service as mining companies transition from owner mining to contract mining.

The directive forms part of additional measures announced by the Ministry of Lands and Natural Resources to guide the implementation of the contract mining policy while protecting workers’ welfare.

In a statement issued and signed yesterday, October 21, by the Ministry’s Director of Communications, Zambaga Rufai Saminu, the government said workers engaged by mining contractors must receive salaries, allowances, benefits and other incentives equivalent to those of employees performing comparable duties under owner mining arrangements.

“No worker shall be rendered worse off as a consequence of its implementation,” the statement said.

The measures follow concerns raised by the Ghana Mineworkers Union, human resource experts and other stakeholders about the potential impact of the transition on workers’ remuneration and conditions of service.

Local Content Reinforced

The Ministry reaffirmed that indigenous Ghanaian companies must undertake contract mining for surface mining operations, while underground contract mining must involve partnerships in which Ghanaian-owned companies hold at least a 50 per cent interest.

The requirement is contained in the sixth edition of the Local Procurement List, which took effect on January 1, 2025, under the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431).

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

The Ministry and the Minerals Commission have also held consultations with the Ghana Mineworkers Union, industry experts and other stakeholders to address concerns about the policy and clarify its regulatory basis.

Harmonise Conditions of Service

Beyond protecting existing remuneration, the Minerals Commission has been directed to take steps to harmonise salaries, wages and conditions of service across the mining industry value chain.

Eligible contractors are also to be classified according to their capacity to provide mining-related services.

The Ministry said the additional measures supplemented existing regulatory requirements and would not prevent the Commission from taking further lawful action to advance the objectives of L.I. 2431.

The Commission has until November 30, 2026, to complete the implementation processes and submit the necessary documents for approval.

Zero Tolerance for Labour Abuses

The Ministry warned that the government would not tolerate unfair labour practices, cartelisation, bid rigging, fronting or other conduct that undermines genuine Ghanaian participation in the mining industry.

“The Government remains resolute in ensuring fairness, transparency, genuine Ghanaian participation and the protection of workers across the mining industry value chain,” the statement said.

The measures form part of President John Dramani Mahama’s Reset Agenda, which seeks to strengthen local participation in the mining sector while ensuring that workers do not bear the cost of the transition to contract mining.

 

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