Ghana Minerals Commission: Contract Mining Directive Mandates Shift by 2026

• The Ghana Minerals Commission has mandated Newmont, AngloGold Ashanti, and Zijin Mining to transition from owner-mining to contract mining by December 2026.
• This directive is enforced under the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431), requiring local ownership for surface and underground operations.
• The Ghana Mineworkers’ Union (GMWU) opposes the policy, citing a rise in casual employment to over 95% by 2026 and a wage reduction of at least half for contract workers.
• The GMWU's August 20, 2026 petition to the Lands and Natural Resources Minister describes the contract model as "dangerous, regressive, and economically unsound."
• The union argues that the policy risks enriching a few contractors at the expense of mineworkers and undermines the original intent of local content regulations.

This is not what we intended for local content regulation. This is a complete reversal of what the intentions were.

The Ghana Minerals Commission has issued a significant directive compelling major mining operators to cease owner-mining practices and fully adopt a contract mining model. Between October 2025 and January 2026, letters were dispatched to three prominent companies still utilizing owner-mining: Newmont, AngloGold Ashanti, and Chinese-owned Zijin Mining. These firms have been mandated to complete their transition to contract mining by December 2026.

Failure to comply with this order could result in severe penalties, including financial sanctions and the closure of their mining operations. This move by the Ghana Minerals Commission contract mining directive aims to reshape the operational landscape of the nation's large-scale mining sector.

This pivotal directive from the Ghana Minerals Commission is being enforced under the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431), a key piece of Ghana mining local content policy. These regulations stipulate distinct local ownership requirements based on the type of mining activity. Specifically, all surface mining operations must be conducted by firms that are entirely Ghanaian-owned. For underground mining, the regulations mandate that companies must possess at least 50% local ownership.

Isaac Tandoh, the Chief Executive of the Minerals Commission, has articulated the rationale behind this policy, stating, "Employment is not the same as ownership. Labour is not the same as control. Our people are working in the mines, agree, but do they own the mines?" This statement underscores the Commission's intent to foster greater local control within the mining industry.

The Ghana Mineworkers’ Union (GMWU) of TUC Ghana, representing approximately 14,000 workers in the large-scale mining sector, has voiced strong opposition to the Ghana Minerals Commission contract mining directive, highlighting its detrimental impact on labor conditions. The GMWU asserts that the industry has already experienced a significant shift towards casualization, with over 90% of workers engaged in fixed-term or casual employment by the close of 2024, and permanent positions accounting for less than 10%. By 2026, this trend is projected to intensify, with more than 95% of mineworkers—meaning nineteen out of every twenty—expected to be under short-term, casual, or contract arrangements.

The union formally expressed its concerns in an August 20, 2026 petition submitted to Lands and Natural Resources Minister Emmanuel Armah-Kofi Buah. In this document, the GMWU unequivocally labels the contract model as "dangerous, regressive, and economically unsound." A study conducted by the union in collaboration with finance journalist Adnan Adams Mohammed revealed that workers transitioning from owner-mining to contractor roles typically experience a wage reduction of at least half for performing the same job. This finding is corroborated by internal contractor staff, who confirm that contract workers generally earn around 50% less in basic pay compared to direct employees of mine operators.

Abdul-Moomin Gbana, the GMWU General Secretary, further elaborated on the broader economic consequences, noting diminished PAYE contributions, reduced pension contributions, and significantly lower retirement benefits. He stated, "This is not what we intended for local content regulation. This is a complete reversal of what the intentions were," adding, "We are totally opposed to the directive." The union also emphasized that the workers, who often risk their lives underground, were never consulted regarding this significant policy shift.

For many years, communities in Ghana's mining regions have grappled with what is often termed the "resource curse." Despite the extraction of gold in areas like Tarkwa, Obuasi, and Kenyasi, local residents frequently report experiencing human rights abuses, environmental degradation, loss of traditional livelihoods, health hazards, and social decay. Historically, the economic stability of these towns was not primarily sustained by corporate social responsibility initiatives, but rather by the consistent payslips of permanent mineworkers. These earnings contributed significantly to local economies through PAYE taxes funding District Assemblies, SSNIT contributions, and the development of markets, rental housing, and shops. The Ghana Mineworkers’ Union argues that this foundational economic structure is now being dismantled, not solely by mining companies, but by the Ghana Minerals Commission contract mining directive itself.

The GMWU's petition critically questions the ultimate beneficiaries of this policy, particularly the "local" contractors positioned to gain from the transition from owner-mining to contract mining Ghana. The petition asserts that "Local content must therefore create opportunities for all Ghanaians. It cannot become a vehicle for exploitation to enrich a few contractors at the expense of the workers who risk and sweat day and night in the bowels of the earth to produce the wealth." This stance highlights the union's concern that while the directive is framed as a Ghana mining local content policy, its current implementation risks exacerbating economic disparities and undermining the welfare of the very workforce it purports to empower.

Lawyers advising mining companies in Ghana must assess the compliance implications of the Minerals Commission's directive mandating a transition to contract mining by December 2026, particularly concerning the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431). This includes reviewing operational structures, employment contracts, and potential labor law exposures arising from increased worker casualization and union opposition, to mitigate risks of sanctions or industrial disputes.

Source: Original reporting via Jerry Detse Mensah-Pah