The Ahafo Mine Local Community – Newmont Ghana Gold Limited – 2008 – Local Employment Agreement

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Basic information



Community party

The Ahafo Mine Local Community

Company signatory

Newmont Ghana Gold Ltd.



Project phase covered



National government: signatory?


Local government: signatory?


Was the agreement required by law?



Not specified

Date of contract signature





Brong Ahafo Region

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Summary of contract

  • Negotiation, representation, and other relevant context

    This agreement responds to the request made by the Ahafo Mine Local Community (which comprises 10 community towns: Sch. 1) to Newmont Ghana Gold to employ as many people from that community as possible (Preamble). The agreement sets forth policies adopted by Newmont Ghana Gold regarding employment (Art. 1.1).

  • Governance, implementation, dispute resolution

    All disputes or grievances arising out of this agreement shall be settled through mediation and conciliation. The parties renounce the right to enter into any form of litigation or arbitration on any disputes or grievances arising out of the agreement (Art. 1.2).

  • Community development obligations: Local content

    Newmont Ghana Gold shall make the employment process of skilled labour well known through existing communication mechanisms, and give preference to community citizens for filling vacant skilled labor positions, provided they have comparable qualifications and experience (Arts. 2.1(a) and (e)). Newmont Ghana Gold shall make its best efforts to employ only community citizens for its unskilled labor positions, and shall follow the procedure and criteria of distribution among the community towns (Art. 2.1(c)). Newmont Ghana Gold shall adopt a policy to ensure that at least 35% of its national workforce in the Ahafo Mining area are community citizens (as defined in Art. 2.4), and shall also use its best endeavours to increase the percentage to 50% within 10 years of commencement of gold production (Art. 2.1(f)). Newmont Ghana Gold shall compile and present an annual report stating the steps it has taken towards the achievement of the goals (Art. 2.1(g)). The agreement establishes a procedure to validate a person’s community citizenship (Art. 2.5), the recruitment procedure, and the criteria for the distribution of unskilled labor among the community towns (Arts. 2.6, 2.7). The funds donated by Newmont Ghana Gold to the Ahafo Mine Community may be used to support specialized training for community citizens, so they may become employable after the training (Art. 3).

  • Other noteworthy clauses

    The agreement defines who is a citizen of the Ahafo Mine Local community and a process for validating them to be eligible for local employment by Newmont Ghana Gold (Arts. 2.4, 2.5). The Community shall send their children to primary school, and support them through secondary and tertiary education and encourage them to study disciplines that will make them employable by Newmont Ghana Gold (Art. 3.2)