ACCRA, Sept 11 – Ghana’s mining regulator is preparing minimum wage and tender benchmarks for contract mining companies as the country seeks to expand local participation in its gold industry while preventing aggressive competition from undermining worker conditions and operational safety.
Ghana, Africa’s largest gold producer, introduced new local-content requirements in January 2025 requiring mining companies to transfer surface activities, including blasting, loading, hauling and dumping, to Ghanaian-owned contractors. Underground mining operations are also required to be undertaken through joint ventures with at least 50% Ghanaian ownership by December 31, 2026.
The policy forms part of a broader effort by resource-rich African countries to retain a larger share of the economic value generated by their mineral resources.
However, Ghanaian mine workers have raised concerns that contract operators could offer lower wages and provide less secure employment than mining companies.
Ben Birch-Mensah, director of local content at Ghana’s Minerals Commission, said the regulator was working to ensure that the transition did not leave workers worse off.
“The regulator does not want people to be worse off under contract mining,” Birch-Mensah told Reuters.
“We are putting together a baseline so that contract miners cannot pay employees below a certain threshold.”
Regulator Targets Aggressive Bidding
The Minerals Commission is also developing minimum tender benchmarks designed to prevent contractors from submitting bids below sustainable operating costs.
Birch-Mensah said some contractors had previously underbid to win work, only to find themselves unable to cover the costs of delivering the contracts. The regulator plans to establish a committee to determine the details of the new framework.
The December 2026 deadline for compliance with Ghana’s local contractor requirements remains firm, with Birch-Mensah describing it as “non-negotiable.”
Newmont, Zijin and Ghana Manganese Company are among mining companies that had yet to comply with the requirements, he said. The companies did not immediately respond to requests for comment.
Many mining companies had already begun outsourcing operations voluntarily before the government introduced mandatory requirements in 2025.
Mining Industry Raises Worker Safety Concerns
The Ghana Chamber of Mines has opposed making contract mining mandatory, arguing that mining companies should retain the option of determining how their operations are structured.
The chamber has nevertheless supported efforts to address aggressive underbidding, warning that unsustainable competition among contractors could ultimately affect wages, training and worker safety.
Ken Ashigbey, chief executive of the Ghana Chamber of Mines, said contractors that consistently underprice their services could lack the resources needed to operate safely.
“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,” Ashigbey said.
The chamber is also examining contractor classifications and minimum bid thresholds as possible ways to address the issue. Ashigbey added that contractors account for a significant share of mining-related incidents.
Ghana’s attempt to increase local participation therefore faces a delicate balance. The government wants more Ghanaian businesses to capture revenue and employment opportunities across the mining value chain, while regulators and industry groups are seeking to ensure that the shift does not create a race to the bottom on labour standards, contractor viability or safety.
