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No more cheap labour – Minerals Commission warns contract miners over low wage

The Minerals Commission is tightening oversight of pay and working conditions in Ghana’s contract mining sector, warning that the local content drive must not come at the expense of Ghanaian workers.

At a meeting with major contract mining firms and stakeholders on September 8, Chief Executive Officer Isaac Andrews Tandoh said increased Ghanaian ownership must translate into tangible benefits for employees.

“Local participation must not be just a change in ownership. It must mean better opportunities, fair pay, and improved conditions for Ghanaian workers,” he said.

The intervention follows concerns that intense competition for contracts is pushing some operators to submit unsustainably low bids, with labour costs bearing the brunt.

The Ghana Mineworkers’ Union has also flagged wage disparities between some indigenous contractors and foreign-owned firms, prompting calls for regulatory action.

To address this, the Commission has tasked contract mining companies to develop an industry-wide framework to set benchmarks for wages and conditions of service.

The draft will be reviewed by stakeholders before being submitted to the Commission for approval.

Once adopted, the framework will enforce uniform standards across the sector to prevent companies from winning contracts by suppressing wages.

The Commission says future contract awards may depend on a bidder’s ability to show fair wage provisions in addition to technical and financial capacity.

Mr. Tandoh stressed that the Commission’s assessment of local content is shifting beyond just awarding contracts to Ghanaians to whether those businesses create decent, sustainable jobs.

“Local ownership must deliver local value, and local value must include decent jobs and fair wages,” he said, urging Ghanaian contractors to compete on expertise, productivity and service quality, not the lowest price.

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