Introduction The case study is start with a history of conflict in Africa which the conflict is related to the natural minerals such as gold. When the local communities tend to enter the competition competition in getting the right over the scarce resources resources such as as land mining with other mining companies, it make the situation of conflict became more complex. Because of of this, the environment raise up a interesting challenges challenges to US based company like Newmont, the world largest corporate producer of gold in Corporate Social Responsibility (CSR). This situation make Newmont harder to make strategies decision in which Newmont functions especially in complex global system and how key stakeholders frame the issues in the midst of this complexity had become an important implications for stakeholders and the decisions for outcomes.
When comes to November 18th 2006, with the high expectation of Newmont for the social responsibility to local stakeholders, President of Ghana was inaugurated the Ahafo mine of Newmont Ghana Gold Limited. A mutual hope between Newmont executives and Ghanaian Government officials had begins the production. In other words, they signed a partnership agreement agreement
which building
a sustainable capacities for the communities and leave a legacy of increased prosperity, confident, deepen relationship between each other by assure that the company would continue pursue opportunities, improve the quality of life for communities in that city through the vicinity of Newmont projects and maximize the values for all the stakeholders with every ounces of gold.
Because of concerns raised by Ghana’s Environmental Protection Agency (EPA), Newmont’s Newmont’s plan to operate in Akyem is behind schedule in 2008. Newmont reveal that gold is not high enough in quantities to justify a capital-intensive mining opinion with that gold that present. To relinquishing parts of the concession, Dr. Hilton, the Noyem chief and community representatives have approached approached government officials and Newmont personnel. The reason they do this UBTE 2033 Negotiation Skills
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is because they tend to transfer the legal title to galamsey and allow them to become an organized, recognized, and working cooperative.
Newmont put them in a strong position to negotiate with the galamsey since them willing to consider about the relinquishing of their prospecting license. After a process of negotiation, the decision of whether Newmont will relinquish parts of its concession and what terms they will require have make the Noyem galamsey side to wait. On the other side, Newmont faced some obstacle in the process in obtain the license to operate at Akyem neighbour since the negotiation was proposed which they hope to open a mine in large scale in 2008. Besides that, Newmont also decide not to take any actions toward the decision on Noyem if the disagreement between Newmont and Ghana’s EPA unresolved. In this situation, time issue is the paramount to reaching the best possible agreement because the trust among each other will become weaker and weaker as time passed. Besides that, as time passes the opportunity to negotiate also will lost.
Dual Concern Model The dual concern model is a conceptual perspective which individuals’ preferred method of dealing with conflict based on the dimensions of either concern for self or others or both. After analyzed the case we have choose, we summarized out the styles of conflict management used by the parties involved in the negotiation process.
First of all, Newmont Ghana Limited is a legal mining company located in Africa. Its main interest is which able to get license to invest in Akyem with the hope of beginning operations in 2008, while Noyem galamsey’s main interest is focused on procuring legal entitlement to mine at Noyem.
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Newmont’s plan to begin operations at Akyem (which located inside the Anjenjua Bepo forest reserve) in 2008, but are behind schedule due to concerns raised by Ghana’s
Environmental
Protection
Agency
(EPA).
At
here,
contending
(competing) style of conflict management is implemented by Newmont to EPA. Newmont reframe the debate by forcing the EPA to question which environmental harm is more important to resolve: widespread mercury pollution and environmental degradation from illegal artisanal miners, or open pit mining that will be remediated in the Anjenjua Bepo reserve. Linking the Akyem negotiation to a commitment to relinquish their Noyem concession and support the mining cooperatives there to work toward more environmental responsibility through mercury abatement and other programs, Newmont could construct an argument that they are willing to protect the watersheds around the forest reserve from toxic mercury pollution.
Furthermore, as the case has been framed at Noyem, Newmont’s main financial benefit for negotiating would be to protect its future operations at Akyem from infringement by illegal miner. If operations at Akyem are not likely to proceed, then Newmont’s BATNA for the Noyem negotiation appear to become higher than the benefits that they could reap by reaching an agreement. In the current situation, it considered as inaction styles of conflict management as Newmont is more concern on obtaining license to invest in Akyem.
On the other side, the galamseys’ needs to eliminate exploitation by corrupt Precious Minerals and Marketing Corporation (PMMC) buyers and to exercise more financial independence and control of marketing and production. In this case, as Newmont is willing to consider relinquishing their prospecting license to the galamsey over the terms of operation, the Noyem galamsey used the inaction (avoiding) styles of conflict management with Newmont. Until the disagreement between Newmont and Ghana’s EPA is resolved, it is unlikely that Newmont UBTE 2033 Negotiation Skills
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executives will take any action toward a decision at Noyem. Therefore, the Noyem galamsey are waiting for the decision from Newmont executives in Denver on whether Newmont will relinquish parts of its concession and what terms they will require.
As time passes, trust will begin to erode and eventually the opportunity to negotiate earnestly will be lost. At such situation, the Noyem Chief (Noyem galamseys’ representative) may change from inaction to contending styles of conflict management toward Newmont. The Noyem Chief may want to investigate the possibility of bringing new parties into the discussion by forming alliances with key players (such as the National Resource Defence Council (NRDC)) on the issues of mercury abatement.
NRDC is an environmental NGO based in Washington and has launched an international campaign to promote policies that will reduce mercury pollution. Although Newmont’s website details the company’s strong commitment to social responsibility, but its website summarizes make no reference to mercury contamination of their exploration sites caused by illegal miners, despite strong evidence that this is occurring at Noyem.
The Noyem Chief could increase the bargaining power with Newmont by offering company executives the chance to be proactive about engaging with the Noyem galamsey on this issue but clarifying that the passage of too much time may force the galamsey to seek NGO alliances that will publicize Newmont’s willingness to overlook the accumulation of mercury pollution at their Noyem concession.
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Three Key Elements The elements that I think the best to improve the negotiation relationship between the parties is justice, because it negotiate fair or unfair between Newmont and Noyem Galamsey. However, the forms that I have choose to use in justice is interactional justice because of how parties treat each other’s on one-to-one relationship and about how parties feel unfairly treated.
Based on the case, the poverty-stricken communities do not trust to the mining companies and the national governments although governments already endorse their claims to land and resources. Because governments have tended to encourage the growth and operation of large-scale mining operations can boost up tax revenues and royalties so that just ignoring the artisanal and small-scale mining operations. Besides that, governments have seen that artisanal and small-scale mining as a threat to their resource bases. This caused that it is unfairly for poverty-stricken communities.
On the other hand, there is a conflict over land between galamsey, large-scale mining operators, and the government. In Newmont’s, Ahafo mine is the first successful operational gold mine in Africa. Now the company plans to develop a second mine at Akyem which progressed much more slowly than at Ahafo. Then, Ahafo begins foster trust, confidence, and quality of improvement for communities under the mutual hope of Newmont executives and Ghanaian government officials for a partnership.
In 2003, the Minerals Commission indicated that their decision about the license would depend on the result of the EIA. Now the refusal by the government to
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consider a license for Newmont at Akyem could seriously undermine the trust and relationship of President Kufuor.
At this time, the Noyen galamsey are waiting for a decision from Newmont on whether will relinquish parts of its concession and what terms they will require. However, Newmont has faced roadblock in the process to obtain a license to operate at neighboring Akyen. Until, the disagreement between Newmont and Ghana’s is resolved. As the time pass, trust eventually opportunity to negotiate will be lost.
In order to force Newmont to walk away from the Eastern region altogether may not a best alternative. So that Noyen galamsey come out a good solution for Newmont is, it would like to work with the Noyem galamsey, IFC and other international development agencies to provide technological solutions, education, and funding for university research to monitor newly. Legalized mining at the Noyem site in order to eliminate the usage of mercury within an agreed time period. As a conclusion, justice is a fair solution for two parties to maintain relationships in the future.
Concessions Make by Negotiation Parties Based on the case of “Golden Opportunity in Ghana”, there are some concession occurred between both negotiating parties. First of all, there are some concessions have been made by Small-Scale Gold Mining Law. There is a permitting s ystem is restricted to Ghanaian nationals and allows small-scale gold mining operations to hold land concessions of 25 acres or less and the mineral rights to these concessions for a period of several years provided that they sell all recovered gold to licensed PMMC buyers.
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While the issue of illegal mining on concessions owned by large mining companies has largely been seen as a law and order problem by organized business, the connections between illegal mining, extensive environmental damage due to mercury pollution, and extreme poverty have been made clear through academic research. Newmont acknowledges the land rights conflict as tied to issues of security and development, but not to environmental integrity.
Newmont had made a concession at Noyem in the vicinity of Akyem, has been assessed to reveal that gold is present but not in quantities high enough to justify a capital-intensive mining operation. Newmont officials are aware that their Noyem concession is swarming with illegal mining activity and have been debating options on best to respond.
Besides, working with Dr Hilson, the Noyem chief and community representatives have approached government officials and Newmont personnel to make a case for relinquishing parts of the concession so that the legal title to operate can be transferred to the galamsey and allow them to become an organized, recognized, working cooperative.
Based on the some concession above, I have learned from the outcome of making concessions is we should tolerate, cooperative, recognized, and organized work effectively. On the other hand, trust with each party is also known as important tools so that it can avoid bargaining and perceptions from others although it is just a small-scale gold mining operation. Furthermore, we should learn how to save and take care about our green environment and to avoid environment damage. Lastly, we should have positive thinking about legal business is a good thing and avoid greedy mind set about illegal thing since that, illegal thing or business can make a high profit. UBTE 2033 Negotiation Skills
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Recommendations First of all, there is a concession held by Newmont at Noyem in the vicinity of Akyem, has been assessed to reveal that gold is present but not in quantities high enough to justify a capital-intensive mining operation. The populations of about 30,000 Galamsey who are actively mining in the region are doing so illegally on Newmont’s concession.
Hence, Newmont have to negotiate with the heads of each Galamsey gang to deal for the best alternatives for both parties. Newmont should put more effort on struggle the prospecting license for the Galamsey gang. While they get the prospecting license, they can take legitimate control on the situation and work to improve the quality and efficiency of their operations.
Besides, Newmont have to deal with the Precious Minerals Marketing Corporation (PMMC) to avoid them to suppress the price of gold that the Galamsey gang had mined. There is a scene that always happen the buyers who
wish to can easily exploit the miners by requiring them to sell their gold for very low prices in exchange for mercury and loans to cover labor costs. This situation would happen because the PMMC buyers have control over distribution of mercury and are the only consistent, available channel through which illegal miners can sell their gold without leaving Ghana. However, while Newmont successful in getting the prospecting license for the Galamsey gang, then they will not be rely on the resources and distribution channel that provided by PMMC, because they will straightly contribute under Newmont and Newmont will supply all resources that they need such as given them access to reliable credit and workable equipment that would eliminate the need for mercury amalgamation (like the clean gold sluice).
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Second, there are conflicts between Newmont with the Noyem Chief. The Noyem Chief and his community representatives could seek to appeal to Newmont’s sense of environmental responsibility. Newmont may find some evidence to prove that they will not destroy the environment, and show the advantages of allowing them to launch their mining operation at Ghana. For example, Newmont may prove to the country by taking action to implement t he reforestation on the land on the same acres of land they used for the mining process.
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