Between October 2025 and January 2026 the Minerals Commission sent letters to Newmont, AngloGold Ashanti and Chinese‑owned Zijin Mining demanding a full transition from owner‑mining to contract mining by December 2026 or face fines and shutdowns. The move is enforced under the Minerals and Mining (Local Content and Local Participation) Regulations, 2020, which require surface mines to be run by wholly Ghanaian‑owned firms and underground mines by firms with at least 50 % local ownership.
Chief Executive Isaac Tandoh defended the directive philosophically, asking whether workers who labour in the mines actually own them. But the Ghana Mineworkers’ Union (GMWU) of TUC Ghana says the shift has already led to a silent casualisation, with more than 90 % of workers on fixed‑term and casual contracts by the end of 2024, rising above 95 % by 2026.
In an August 20, 2026 petition to Lands and Natural Resources Minister Emmanuel Armah‑Kofi Buah, the GMWU called the contract model “dangerous, regressive, and economically unsound.” A study with finance journalist Adnan Adams Mohammed found wages fall by at least half when workers move from owner‑mining to contractors, with contractor staff earning roughly 50 % less in basic pay than direct employees of mine operators. The loss extends to lower PAYE, reduced pension contributions and diminished retirement benefits.
Gbana, GMWU General Secretary, warned that the directive could open floodgates to further exploitation, abuse and erosion of protections workers have fought for. He noted that local contractors have consistently failed to meet statutory obligations, including SSNIT contributions and Tier 2 pension payments, citing companies such as Engineers & Planners, E&P, Rabotec, BCM, Electrochem and Rocksure.
The Minerals Commission admits operational contract rates have fallen by over 17 % as local contractors undercut each other, dropping from $3 per tonne to below $2.50. Yet its response is to tighten contractor oversight rather than suspend the directive. No public cost‑benefit analysis has been released on the impact on PAYE, SSNIT, Tier 2, community spending or safety.
Since September 1, the union has threatened industrial action, including wearing red armbands across all mines. The central question remains: who truly benefits from the local content regulation and at what cost to Ghana’s mineworkers?
