Ghana: Mining regulator prepares minimum wage and bidding thresholds

This reform accompanies a tightening of local content policies in the extractive sector. According to Reuters, Ghana has instructed mining groups to assign surface operations, including blasting, loading, and transportation, to companies owned by Ghanaians, while underground activities must involve joint ventures with at least 50% local participation by December 31, 2026.

Ben Birch-Mensah explained that the regulator is working on establishing a wage level below which subcontractors cannot go. A separate mechanism will also set minimum benchmarks for financial bids, following instances where companies reportedly offered prices too low to sustainably cover their operating costs.

The measure also addresses concerns raised by workers in the sector, who fear lower wages and reduced job security due to the increased reliance on subcontracting. The Ghana Chamber of Mines disputes the mandatory nature of certain outsourced operations but supports the idea of thresholds to prevent underbidding that could impact training, working conditions, and safety.

Local content at the heart of the reform

The Minerals Commission has been promoting the enhancement of Ghanaian participation as one of the key priorities of its policy for several months. On its official website, it emphasizes that the local content framework aims to create jobs, develop national businesses, and increase their capacity to access contracts in the mining industry, particularly under the mining law and local content regulations.

In February, the regulator also announced new measures to increase Ghanaian ownership and control in the sector. The government aims to make local subcontracting and procurement instruments for value creation while maintaining the technical, environmental, and safety requirements imposed on operators.

Ben Birch-Mensah clarified that the December 2026 deadline for compliance with local subcontracting rules remains “non-negotiable.” He cited Newmont, Zijin, and Ghana Manganese Company among the groups that have not yet completed their compliance, while a committee is still to finalize the specific terms for future wage and price floors.