Golden Opportunities at Ghana

8/8/2019 Golden Opportunities at Ghana

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GOLDEN OPPORTUNITY IN GHANA

A NEGOTIATION CASE STUDY AND ANALYSIS

PRESENTED BY-

GAURAV OBEROI 2K91A38JASWINDER SINGH 2K91IB50MEGHNA BOSE 2K91IB23SHILPI SALARIA 2K91IB50







DISTRUST IN GOVERNMENT.DISTRUST IN MINING COMPANIES.REBELLIOUS RURAL AND LOCAL PEOPLE.

HISTORY OF CONFLICT



GOLD MINING IN GHANA

GOLD EXTRACTION IN GHANA IS BOOMING

GALAMSEY AND PMMC



The beginning of aµGOLDEN PARTNERSHIP¶

Newmont¶s mine sites - AHAFO and AKYEM

AIMS OF NEWMONT

Plans to operatewith governmentsupport whileexploringopportunitiesoutside

Fair legal andadministrativeframework

Improvinglives of thecommunitiesresiding inthe vicinity

Create valuefor stakeholders



Concerns raised due to slow progress of AkyemThreat declared EPA after conducting environmental impactassessment.

International finance corporations restrictions.

NEWMONTS social responsibility efforts to build local people trust-M

anaging biodiversity by working with conservationinternational,Ghana

Acknowledging environmental issues and mercury management

Reforestration (3 nurseries of 50 acres)



I U FAC WMO I AK M

Issues onethics andlegality of mining

Trust andrelationshipbuildingprocess willhamper

Projectfundingproblems

International financecorporationsopposingandwithdrawingsupport

Land rightsconflict andillegalmining posethreat totheirdevelopment



Possible Strategy

Reframe the debate

Force EPA to answer which Environmentalharm is more imp to resolve

1. Widespread mercury pollution &Environment degradation from artisanalminers

OR2. Open pit mining that will be remediated in

Anjenjua Bepo reserve.



What were the possible arguments that

Newmont could construct to counter EPA?Protection from Toxic mercury pollution

Illegal mining from Newmont s mining areas

Economic dullness of the region in case of Newmont s exit

Offer to collaborate with Govt agencies

Seek Compensation



P roblems with Noyem ?

Delayed Start

Questions raised over commercial viability

Illegal M iningM ining accident

Negative publicity



What were Noyem s possible

strategies ?

1. Sell the prospecting license

2. Keep it and sweep3. Engagement



What was the way forward ?????

The negotiation of Noyem would involve 5 parties. Newmont.The Noyem Chief.The Mineral Chamber.The University Of Manchester.The Precious Minerals Marketing Corporation.

NEGOTIATION ANALYSIS



INTEREST OF NOYEM GALAMESY:

Get legal land title.Curb exploitation by PMMC.

OPTIONS:

Agreement would give reliable credit and workableequipments.

Reduce mercury pollution.



What is the bargaining power of bothNewmont and Noyem Galamsey?

F isher¶s bargaining power model.

Bargaining power on the basis of:Skill and Knowledge.Good relationship.Good BATNA.Legitimacy.Process of work.



NEWM ONTGHANA GOLD

LIM ITED



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Golden Opportunities at Ghana