Ghana Moves to Protect Wages as Mining Shifts to Local Contractors

Ghana’s mining regulator is preparing minimum wage and tender benchmarks for mining contractors as the country pushes mining companies to increase their use of locally owned contractors.

The Minerals Commission says the measures are designed to prevent aggressive underbidding from undermining workers’ wages, safety and job security.

Ghana, Africa’s leading gold producer, introduced rules in January 2025 requiring mining companies to transfer surface mining activities, including blasting, loading, hauling and dumping, to Ghanaian-owned contractors. Underground operations are also expected to be carried out through joint ventures with at least 50% Ghanaian ownership.

The compliance deadline is December 31, 2026.

Regulator Targets Low Wages and Unsustainable Bids

Ben Birch-Mensah, director of local content at Ghana’s Minerals Commission, said the regulator wants to ensure workers are not worse off as mining companies transition to contract mining.

The commission is developing a wage baseline below which contractors would not be allowed to pay employees.

It is also preparing minimum tender benchmarks to prevent contractors from submitting bids that are too low to cover the actual cost of mining operations.

Birch-Mensah said aggressive underbidding has, in some cases, left contractors unable to meet their operating costs.

Mining Workers Raise Concerns

Ghanaian mine workers have raised concerns about the shift toward local contractors, arguing that contract companies can offer lower wages and weaker employment security than established mining companies.

The local-content policy forms part of Ghana’s broader effort to ensure that more economic value from its mineral resources remains within the country.

However, the Ghana Chamber of Mines has argued that contract mining should remain voluntary rather than mandatory.

The chamber supports efforts to tackle destructive price competition. Its CEO, Ken Ashigbey, warned that excessive underbidding could leave contractors without enough resources to properly pay and train workers or maintain safety standards.

The chamber is also exploring contractor classifications and minimum bid thresholds to help address the problem.

Major Miners Face Compliance Deadline

The Minerals Commission says the December 2026 deadline remains firm. Newmont, Zijin Mining and Ghana Manganese Company were among the companies identified by the regulator as yet to comply with the local contracting requirements.

The development highlights the challenge facing Ghana’s mining industry: increasing local participation while ensuring that workers, contractors and safety standards are not compromised.

If implemented effectively, the proposed wage and tender floors could help ensure that Ghana’s push for greater local participation creates sustainable jobs rather than simply shifting mining activities to lower-cost contractors.

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