Minerals Commission is drafting wage, tender floors for mining contractors, official says

Ghana's Minerals Commission is developing minimum wage and tender standards for mining contractors as the country mandates more operations to be outsourced to local firms. The commission aims to prevent aggressive underbidding that has left contractors struggling to meet operating costs and protect miners' pay and working conditions, according to Ben Birch-Mensah, the Minerals Commission's director of local content.

In January 2025, Ghana ordered surface mining operations to be handled by Ghanaian-owned contractors and underground operations to be conducted by joint ventures with at least 50% local ownership, or face sanctions. This move aligns with a broader effort by resource-rich African nations to retain more value from their mineral wealth.

However, Ghanaian mine workers have expressed concerns over the directive, stating that contractors offer lower pay and weaker job security. Birch-Mensah emphasized that the regulator aims to ensure workers' pay and conditions are not compromised, setting a baseline to prevent contractors from paying employees below a certain threshold.

Officials are also preparing minimum tender benchmarks to prevent contractors from bidding below sustainable levels. The commission plans to establish a committee to finalize the policy details. As of now, firms such as Newmont, Zijin, and Ghana Manganese Company have yet to comply with the new requirements, with their compliance due by December 2026.

The Ghana Chamber of Mines has criticized the policy, arguing that contract mining should be voluntary rather than mandatory. Despite this, the chamber supports efforts to address underbidding, warning that unhealthy competition among contractors could harm worker welfare and safety. Chamber CEO Ken Ashigbey highlighted the potential consequences of contractors continuously undercutting each other, including compromised worker welfare, inadequate training, and safety issues.