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Government bars wage cuts in mining sector under contract mining policy

by Ama Nyameye
October 22, 2026
Government bars wage cuts in mining sector under contract mining policy
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The government has directed the Minerals Commission to ensure that workers in Ghana’s mining industry do not suffer wage cuts or reductions in benefits and conditions of service as mining companies transition from owner mining to contract mining.

The directive, announced by the Ministry of Lands and Natural Resources in a press release dated October 21, 2026, seeks to protect workers’ welfare while strengthening local participation in the mining sector.

Under the new measures, workers employed by mining contractors must receive salaries, wages, allowances, benefits and other incentives equivalent to those enjoyed by workers performing comparable duties under owner mining arrangements before the transition.

“The Ghanaian contract mining worker shall enjoy salaries, wages, allowances, benefits and other incentives equivalent to those applicable to an owner mining worker performing comparable work before the transition to contract mining,” the ministry stated.

The government has consequently directed the Minerals Commission to ensure that “no worker engaged, or to be engaged, by a mining contractor or analogous service provider shall suffer any deterioration or diminution in wages, emoluments, entitlements, benefits or conditions of service” as a result of the transition.

The commission has also been tasked with harmonising salaries, wages and conditions of service across the mining industry value chain, as well as categorising eligible contractors according to their capacity to provide mining-related services.

Stakeholder concerns and government response

The ministry said the additional measures followed concerns raised by the Ghana Mineworkers’ Union, human resource experts and other stakeholders over the potential effects of the transition on workers’ salaries, wages and conditions of service.

It said the ministry and the Minerals Commission had held extensive consultations with union leaders, industry experts and other relevant stakeholders to clarify the regulatory basis of the policy and address concerns about its implementation.

The ministry reaffirmed the government’s position that the transition must not leave workers worse off, stating that the new measures were intended to give immediate and effective expression to safeguards for employees in the sector.

It added that the majority of multinational mining companies operating in Ghana had successfully transitioned their operations to comply with the local content requirements.

“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.

Local participation requirements

The directive also reinforces Ghana’s local content requirements for contract mining operations.

According to the ministry, indigenous Ghanaian companies are required to undertake contract mining for surface mining operations, while underground contract mining must be undertaken through partnerships in which Ghanaian-owned companies hold at least 50 per cent interest.

The requirement was incorporated into the sixth edition of the Local Procurement List, effective January 1, 2025, under the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (LI 2431).

The ministry said the requirements were intended to advance local participation in the mining industry while ensuring that Ghanaian companies benefit meaningfully from mining-related activities.

The latest measures seek to ensure that the implementation of the policy does not undermine workers’ welfare or employment conditions.

November 30 deadline, zero-tolerance warning

The Minerals Commission has been directed to complete the necessary processes for implementing the measures and submit the required documents for approval by November 30, 2026.

The ministry also warned against unfair labour practices and other conduct that could undermine the objectives of the local content policy.

Under the government’s Reset Agenda, it declared that there would be “ZERO TOLERANCE for unfair labour practices, cartelisation, bid rigging, fronting, or any other conduct that undermines local content objectives or operates to the detriment of the Ghanaian worker.”

The statement added that the government remained committed to “fairness, transparency, genuine Ghanaian participation and the protection of workers across the mining industry value chain.”

The additional measures are supplementary to existing regulatory requirements, and the Minerals Commission may take further lawful action necessary to advance the objectives of LI 2431.

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