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Representative image · Photo: IndiaFocal

Ghana Drafts Wage and Tender Floors for Contract Miners

Ghana's mining regulator is preparing minimum wage and tender benchmarks for contract mining firms to prevent underbidding and protect workers.

Ghana's mining regulator is developing minimum wage and tender benchmarks for contract mining firms, a senior official said, as the country pushes miners to hand more operations to local contractors.

The Minerals Commission, which oversees the sector, wants to ensure that workers are not worse off under contract mining. "The regulator does not want people to be worse off under contract mining," said Ben Birch-Mensah, director of local content at the commission. "We are putting together a baseline so that contract miners cannot pay employees below a certain threshold."

The move follows a January 2025 directive requiring miners to shift surface operations — blasting, loading, hauling and dumping — to Ghanaian-owned contractors, and underground operations to joint ventures with at least 50% local ownership by December 31 or face sanctions. The policy aligns with a broader push by resource-rich African nations to retain more value from their mineral wealth.

Ghanaian mine workers have opposed the directive, saying contractors offer lower pay and weaker job security. The commission is also preparing minimum tender benchmarks to prevent contractors from bidding below sustainable levels. Birch-Mensah said aggressive underbidding had in some cases left contractors unable to meet operating costs, and a committee would be set up to work out the policy details.

He said the December 2026 compliance deadline for local contractors "is non-negotiable," adding that Newmont, Zijin and Ghana Manganese Company were among firms yet to comply. The companies did not immediately respond to requests for comment.

The Ghana Chamber of Mines has criticized the policy, saying contract mining should be optional rather than mandatory. However, the chamber supports efforts to address underbidding, warning that unhealthy competition could affect worker welfare and safety. "If people keep undercutting themselves, they may not have the resources to undertake the work, they won't pay workers properly, they won't train people, and safety is compromised," said Chamber CEO Ken Ashigbey.

Ashigbey said the chamber was also exploring contractor classifications and minimum bid thresholds to curb underbidding, noting that contractors account for a significant share of mining incidents.