Ghana moves to standardise mining pay amid local-content drive

Ghana has ordered its mining regulator to standardise pay and employment conditions across the industry, a move that could ease union concerns over a planned shift of mining operations from multinational companies to local contractors by December.

Africa’s top gold producer has directed miners to transfer operations to local contractors or face sanctions under local-content rules affecting major operators including Newmont (NYSE: NEM), AngloGold Ashanti (NYSE: AU), Zijin (SHA: 601899) and Ghana Manganese Company. Labour unions have opposed the policy, warning it could reduce workers’ pay and benefits.

The Ministry of Lands and Natural Resources said late on Wednesday it had instructed the Minerals Commission to ensure no worker employed by a mining contractor suffers a cut in wages, benefits or conditions of service as a result of the shift from owner mining to contract mining.

The regulator has also been tasked with harmonising salaries, wages and employment conditions across the mining value chain and introducing a contractor classification system based on capacity. It must complete the process and submit implementation proposals by November 30.

The ministry said there would be “zero tolerance” for unfair labour practices, cartelisation, bid-rigging and fronting arrangements that undermine local-content objectives.

The Minerals Commission did not immediately respond to a request for comment.

(Reporting by Maxwell Akalaare Adombila. Additional reporting by Christian Akorlie and Emmanuel Bruce in Accra. Editing by Mark Potter)