Ghana’s Mining Contractor Deadline Faces Uncertainty After Suspension
Ghana’s deadline requiring multinational mining operators — Newmont, AngloGold Ashanti and Zijin Mining — to transfer mining operations to local contractors by December 2026 faces uncertainty following a temporary suspension of the directive and subsequent reaffirmation of the deadline by the country’s mining regulator.
The Ministry of Lands and Natural Resources agreed to temporarily suspend the directive in May following consultations with the Ghana Mineworkers’ Union, which raised concerns about potential job losses, reduced wages and weaker employment benefits under local contracting arrangements.
According to the union, the government also agreed to establish a committee to review the local content policy and incorporate workers’ concerns into its implementation. The suspension was announced on May 26.
However, the Minerals Commission reaffirmed its position in September, with its Director of Local Content, Ben Birch-Mensah, describing the December 31, 2026 deadline as “non-negotiable”.
In a report published on September 10, Reuters said the Commission was still pressing for compliance, identifying Newmont, Zijin and Ghana Manganese Company among the firms yet to meet the requirements. The report did not clarify whether the government had formally lifted the earlier suspension.
Under regulations introduced in January 2025, surface mining operations must be undertaken by fully Ghanaian-owned companies, while underground mining must be carried out by companies with at least 50 per cent Ghanaian ownership.
The requirements cover activities including blasting, loading, hauling and dumping, with the government seeking to strengthen local participation in the mining industry and retain more value from the country’s mineral resources.
In April, the Minerals Commission directed Newmont, AngloGold Ashanti and Zijin to complete the transition by December 2026 or face sanctions, including possible mine shutdowns.
Newmont had requested an extension until 2027, citing additional regulatory and governance requirements associated with its status as a publicly listed company. The Commission rejected the request, according to Reuters.
AngloGold Ashanti said it had already engaged a contractor through a 50/50 joint venture at its Iduapriem gold mine and had begun the process of transitioning fully to a local contractor. Zijin, meanwhile, said it was preparing tenders and technical frameworks to comply with the rules.
The policy has faced opposition from mineworkers, who argue that local contractors may offer lower wages and weaker job security than multinational mining companies.
The Ghana Mineworkers’ Union has warned that the transition could undermine workers’ livelihoods unless adequate protections are introduced.
Meanwhile, the Minerals Commission is developing minimum wage benchmarks and tender requirements for mining contractors to prevent unsustainable bidding practices and protect workers’ earnings.
The Ghana Chamber of Mines has questioned making contract mining compulsory, arguing that the decision should be commercially driven, while supporting measures to prevent contractors from undercutting one another at the expense of wages, training and safety.
With the December deadline approaching, the unresolved status of the temporary suspension leaves questions over the implementation of the policy and the obligations of the affected mining companies.
Related