Kilambi News
Monday, November 9, 2026

Ghana contract mining directive risks halving miner wages

Mining Sunday, November 8, 2026 - Updated Nov 8, 2026 07:11

Ghana's Minerals Commission has ordered Newmont, AngloGold Ashanti and Zijin Mining to switch fully to contract mining by December 2026, and the mineworkers union says contractor pay is typically about half operator pay for the same work.

Why it matters: The directive is the operational edge of Ghana's mining repricing: it reaches inside the pit, changing who employs the workforce at the country's biggest gold mines, and the union response will decide whether it lands as local content policy or as a wage cut.

Data as of Directive letters October 2025 to January 2026; union petition August 20, 2026; MyJoyOnline investigation and union warnings published November 8, 2026; compliance deadline December 2026.

Ghana’s Minerals Commission has ordered the last three large miners still running their own operations, Newmont, AngloGold Ashanti and Chinese owned Zijin Mining, to move fully from owner mining to contract mining by December 2026 or face sanctions including fines and mine closures. The directive, issued in letters between October 2025 and January 2026, is enforced under the Minerals and Mining (Local Content and Local Participation) Regulations, 2020, known as L.I. 2431. Under the rules, surface mining must be awarded to wholly Ghanaian owned companies, while underground mining must be carried out by firms with at least 50 percent local ownership.

The Ghana Mineworkers’ Union, which represents about 14,000 employees in large scale mining, says workers were not consulted and that the shift cuts pay for the same work. Research conducted by the union with finance journalist Adnan Adams Mohammed found that workers moving from owner mining to contractor employment receive at least 50 percent less pay, with contractor staff confirming that basic wages are typically about half those paid to mine operator employees. The union says more than 90 percent of mining workers were already on fixed term or casual contracts at the end of 2024, and that the share in short term, casual or contract employment has since risen above 95 percent.

Commission figures cited by the union show operational contract rates have fallen by more than 17 percent as local contractors undercut one another. Chief Executive Isaac Tandoh acknowledged rates had dropped from $3 per tonne to below $2.50, leaving workers worse off, and the Commission’s response has been to strengthen contractor oversight rather than suspend the directive. Tandoh defended the policy on ownership grounds: “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?”

The union’s August 20, 2026 petition to Lands and Natural Resources Minister Emmanuel Armah-Kofi Buah described the contract mining model as dangerous, regressive and economically unsound, and warned of lower tax payments, smaller pension contributions and reduced retirement benefits. A May 26 meeting agreed a roadmap to suspend the directive and establish a technical committee, but the union says that process has stalled, and it has threatened industrial action. Mineworkers at Akyem Abirem, at Zijin’s operation, protested this week, and youth in the community petitioned the minister on November 5 for an immediate suspension and a full impact assessment.

The Ghana Chamber of Mines has called for dialogue rather than confrontation. Its chief operating officer, Ahmed Dasana Nantogmah, said greater Ghanaian participation is a shared objective, but the approach must protect existing jobs, maintain safety and operational efficiency, and keep the industry competitive enough to sustain investment. The dispute now sits alongside the sliding royalty scale and the proposed new Mining Act covered on this site on November 5: Ghana is repricing mining on three fronts at once, fiscal terms, licence terms and, with this directive, the employment model inside the mine itself.

Sources

  1. Contract Mining Directive: How Minerals Commission's push for local content is creating working poor in mining towns in Ghana - MyJoyOnline - 2026-11-08
  2. Ghana mining directive risks creating 'working poor', union warns - Ghana Guardian - 2026-11-08
  3. Ghana directs Newmont, AngloGold, Zijin to shift mining ops to local firms by December, sources say - Reuters, via Mining Weekly - 2026-04-22
  4. Mining reforms must protect jobs, investment and community interests, Ghana Chamber of Mines - MyJoyOnline - 2026-11-06