Ghana develops minimum wage, tender benchmarks for mining contractors

Ghana's Minerals Commission is set to establish minimum wage and tender benchmarks for mining contractors with the aim of preventing unsustainable bidding practices and safeguarding workers' pay and conditions. This move is part of the country's push towards increased participation of Ghanaians in the mining sector. The proposed wage floor is designed to ensure that workers employed by contract mining companies are not paid below a predetermined threshold.

Additionally, the regulator is preparing minimum tender benchmarks to dissuade contractors from submitting bids that are excessively low, which could leave them struggling to cover operating costs and potentially impacting workers' pay, training, and safety. According to Ben Birch-Mensah, the director of Local Content at the Minerals Commission, aggressive underbidding might leave contractors unable to meet their operating costs, ultimately affecting the welfare of workers.

In January 2025, Ghana introduced regulations mandating surface mining operations to be carried out by Ghanaian-owned contractors. Operations underground are expected to involve joint ventures with a minimum of 50% Ghanaian ownership. However, the compliance deadline for these requirements is set for December 31, 2026. Despite the policy's introduction, it has faced resistance from the Ghana Chamber of Mines, which contends that contract mining should not be mandatory.

The Chamber, nevertheless, endorses measures aimed at curbing unhealthy competition and unsustainable bidding among contractors. The Minerals Commission has reiterated that the December 2026 deadline for local contractor participation remains firm. Nevertheless, several major mining firms have yet to fully comply with the directive.