• Ghana ordered major miners to transfer operations to local contractors by December 2026.
• Authorities aim to build national mining champions capable of operating large assets.
• Early results include a $500 million-backed local takeover bid for the Damang mine.

Ghana is intensifying efforts to promote local content in its mining sector by requiring global operators to shift subcontracting activities to domestic firms, as part of a broader strategy to build national champions.

The Minerals Commission has issued formal notices to Newmont Corporation, AngloGold Ashanti and Zijin Mining, ordering them to transfer mining operations to local contractors before December 2026.

This directive reinforces Accra’s broader policy to strengthen local participation in the mining sector. Moreover, the move reflects a growing trend among African resource producers that seek to prioritize domestic value creation.

Mining contractors play a central role in mineral production, as they handle drilling, ore extraction, loading and transport. These firms therefore control key stages of mining operations.

The directive from the Minerals Commission aligns with another recent government decision. Earlier this month, authorities restricted the tender for the Damang gold mine takeover to Ghanaian companies only.

This policy linkage reflects a clear strategy. Authorities have relied on the emergence of capable local contractors to justify excluding foreign bidders from strategic assets.

As a result, Engineers and Planners Ltd, led by Ibrahim Mahama, won the bid. The company previously operated as a contractor at Damang and demonstrated operational knowledge of the site’s infrastructure and geology.

The evaluation committee stated, “The company has demonstrated the greatest capacity to operate the Damang mine, as evidenced by the submission of the most viable bid.” The company also committed to mobilizing at least $500 million to sustain operations and proposed extending the mine’s lifespan by 10 years after nearly three decades of operation by Gold Fields.

A policy already widely implemented

Unlike Gold Fields and several other foreign operators, Newmont Corporation, AngloGold Ashanti and Zijin Mining have not relied extensively on external mining contractors.

However, a policy introduced in January 2025 requires companies to use 100% Ghanaian firms for open-pit mining and entities with at least 50% local ownership for underground operations.

Sources cited by Reuters indicate that most major operators have already complied. The regulator rejected a request from Newmont Corporation to delay compliance until 2027, arguing that other listed firms, including Gold Fields, have already met the requirement.

Authorities warned that non-compliant companies will face heavy fines and, if violations persist, potential mine closures.

Authorities view the regulation as a tool for industrial development rather than solely a compliance mechanism. The selection of Engineers and Planners Ltd to take over full operations at Damang illustrates this approach.

The evaluation committee reiterated, “The company has demonstrated the greatest capacity to operate the Damang mine,” highlighting its operational readiness and financial backing.

Field test exposes structural challenges

The Damang transition represents a real-world test of Ghana’s local content strategy. However, success will depend on more than a single company’s performance.

The Ghana Mineworkers’ Union, which represents about 14,000 workers, has announced coordinated resistance to the directive, including potential strikes and protests.

Its president, Abdul Moomin Gbana, stated that local contractors pay wages roughly 50% lower than international operators, offer less job security and show gaps in social contributions.

While the Minerals Commission acknowledges these concerns, its director general Isaac Tandoh said authorities will introduce measures to regulate pricing and strengthen oversight of contractors.

Beyond wage issues, the long-term viability of the strategy will depend on the competitiveness of local firms. Ahamadou Mohamed Maïga, executive director at Extractive & Energy Investment Council, told Ecofin Agency that mining companies must meet strict performance, profitability and efficiency targets.

He added that regulators must complement mandates with tangible support, including technical capacity building and access to financing tailored to mining projects. Without these conditions, the national champions that Accra aims to build will remain exposed to structural weaknesses.

Emiliano Tossou