This article argues that during the formative years of the colonial state in Ghana, European employers established new collaborative mechanisms with African intermediaries for the purpose of expanding the modern mining sector. They were forced to do so on account of severe labour-market limitations, resulting primarily from the slow death of slavery and debt bondage. These intermediaries, or “headmen”, were engaged because of their apparent affluence and authority in their home villages, from which they recruited mineworkers. However, allegiances between them and managers in the Tarkwa gold mines considerably slowed the pace towards free labour. Indeed, a system in which managers reinforced economic coercion and repressive relationships of social dependency between Africans, allocating African labour contractors fixed positions of power, resulted from the institutionalization of purportedly traditional processes of labour recruitment into the modern market.