The Minerals Commission is formulating minimum wage standards and tender benchmarks for contract mining companies as Ghana intensifies efforts to expand local participation in the extractive industry and prevent excessively low bids from undermining workers’ welfare and the financial sustainability of mining operations.
The proposed framework is intended to establish a minimum threshold for employee remuneration while discouraging contractors from submitting offers that are insufficient to cover the costs of executing mining assignments. The initiative comes amid an ongoing government directive requiring mining companies to transfer specified operations to Ghanaian owned contractors and locally controlled joint ventures.
Minerals Commission moves to safeguard workers’ earnings
Ben Birch Mensah, the Minerals Commission’s Director of Local Content, disclosed the proposed measures in an interview with Reuters on Thursday, September 10, 2026.
He said the regulator was determined to ensure that employees did not suffer deterioration in their wages or working conditions as mining operations increasingly moved into the hands of local contractors.
The commission is consequently preparing a baseline remuneration standard below which contract mining companies would not be permitted to pay their employees. The proposed arrangement is intended to provide a degree of protection for workers who have expressed concerns about the financial implications of the outsourcing policy.
Birch Mensah explained that the regulator did not want workers to become worse off under contract mining. He added that the commission was developing a minimum wage threshold to prevent employers from paying their personnel below an established level.
New tender benchmarks to address aggressive underbidding
Alongside the proposed wage framework, the Minerals Commission is also developing minimum tender benchmarks to discourage mining contractors from competing through unsustainably low quotations.
According to Birch Mensah, some contractors have submitted bids so low that they subsequently struggled to meet their operational expenses. Such practices, he indicated, could weaken the financial capacity of companies to execute their contractual obligations effectively.
The commission intends to establish a committee to determine the details of the proposed tender policy. The anticipated framework would seek to ensure that competition among contractors does not come at the expense of viable business operations, fair remuneration or acceptable workplace conditions.
Local participation directive faces industry concerns
The proposed reforms form part of Ghana’s broader drive to retain a greater share of the economic benefits generated by its mineral resources.
In January 2025, the government directed mining companies to transfer surface activities, including blasting, loading, hauling and dumping, to Ghanaian owned contractors. Underground mining operations are to be undertaken through joint ventures with at least 50 percent Ghanaian ownership by December 31, 2026. Companies that fail to comply may face sanctions.
The directive has, however, attracted criticism from sections of the mining workforce. Some mine workers have raised concerns that contract mining arrangements could result in lower wages and reduced employment security.
Birch Mensah maintained that the December 2026 deadline for compliance with the local contractor requirement was non negotiable. He identified Newmont, Zijin and Ghana Manganese Company among the companies yet to comply with the directive at the time of his interview. The companies had not immediately responded to Reuters’ requests for comment.
Chamber of Mines supports safeguards but questions mandatory outsourcing
The Ghana Chamber of Mines has opposed the compulsory nature of the contract mining policy, arguing that mining companies should retain the discretion to determine whether outsourcing is appropriate for their operations.
Nevertheless, the chamber supports efforts to address destructive price competition within the contracting industry.
Ken Ashigbey, Chief Executive Officer of the Ghana Chamber of Mines, warned that contractors who consistently undercut their competitors could eventually lack the financial resources required to execute their assignments properly. He said this could affect workers’ remuneration, staff training and safety standards.
Ashigbey further disclosed that the chamber was examining possible contractor classifications and minimum bid thresholds as mechanisms for addressing the problem. He also indicated that contractors account for a significant proportion of incidents recorded within the mining industry.
Balancing local ownership with sustainable mining operations
Ghana’s evolving contract mining policy presents two interconnected priorities for the country’s extractive sector. The first is to expand opportunities for Ghanaian owned enterprises to participate more substantially in mining activities. The second is to ensure that the transition does not weaken the financial, labour and safety standards required for responsible mineral production.
The proposed wage and tender benchmarks are therefore expected to become important instruments in determining how local contractors compete for mining assignments. Their eventual design and implementation will be significant in establishing whether increased local participation can be accompanied by sustainable business practices and adequate protection for mine workers.
The Minerals Commission’s initiative signals an effort to address the concerns emerging from the transition while maintaining the government’s December 2026 deadline for local contractor compliance
