1. PRESENTED BY: TENEWA ASAMOAH
DISPUTE BETWEEN NEWMONT GHANA LIMITED AND SMALL SCALE MINERS (GALAMSEY OPERATORS)
PRESENTED BY: TENEWA ASAMOAH
092SIS02

2. Background Newmont is a gold mining company in Ghana which started
Operations in 2006
Newmont has concessions in Noyem and Akyem areas
Plans to start a new site in Akyem has been delayed by
Ghana’s EPA because the site is situated in a National forest
reserve called Anjenjua Bepo reserve
Noyem is a town of 30,000 artisanal miners (Galamsey operators)
Miners are illegally mining on Newmont’s concession

3. Background Cont’d
Newmont is aware that the Noyem concession does not have gold in amounts deserving heavy amount of investment
Newmont is concerned about the activities of the Galamsey operators as their activity
i. Encroaches on Newmont’s concession
ii. Causes mercury pollution
iii. Gives Newmont bad publicity
The chief of Noyem and community leaders have petitioned government and Newmont officials to make a case for relinquishing parts of the Noyem fields so that the legal title to operate
Miners are illegally mining on Newmont’s concession

4. Background Cont’d
The 1989 small-scale mining law PNDCL 218 allows Galamsey operators to legalize their activity
But they are required by law to sell their gold to PMMC (gov’t agency) through their agents who also control the supply of mercury – essential for the amalgamation of gold
PARTIES TO NEGOTIATION
Newmont Ghana
Noyem Galamsey Operators
EPA
Noyem Chief
But concentration will be on Newmont and Galamsey operators for this paper

5. INTERESTS Newmont Galamsey Curb mercury pollution
Reach a deal with the
Galamsey operators
Get permission to start operation in Akyem
Galamsey
Get legal land title
Curb exploitation by PMMC’s agents

6. Arguments
If plans to commence operations at Akyem fails, Newmont can develop a BATNA by making a strategic move
Newmont could reframe the debate to force 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 recur in the Anjenjua Bepo reserve
Newmont can fashion an argument that they are willing to protect the watersheds around the forest reserve from toxic mercury pollution by leveraging the Akyem negotiation against a commitment to relinquish their Noyem concession.

7. Arguments
It can also argue that it help the Galamsey operators to achieve environmental sustainability through mercury abatement and other programs. In addition, the argument could be made that once the Galamsey operators deplete the gold at Noyem they are likely to begin operations at other local sites that they know to be productive, such as those that have already been identified by Newmont inside the forest reserve.
To ensure mutual gains for both sides Newmont is willing to consider relinquishing their prospecting license, and hence are in a strong position to negotiate with the Galamsey operators over the terms of operation..

8. Arguments Cont’d
As a reward for the Galamsey operators to yield to Newmont’s offer, it could create more options by providing direct financial support for the district centre, technical support through extension of trained personnel, or assistance in the form of financial support from international donor agencies
STALEMATE
Newmont is facing some significant roadblocks in obtaining a license to operate at neighboring Akyem
Until the disagreement between Newmont and Ghana’s EPA is resolved, it is unlikely that Newmont executives will take any action toward a decision at Noyem.

9. Galamsey operators have invested a certain amount of trust in both the Newmont executives and the Ghanaian government, the issue of time is paramount to reaching the best possible agreement
Conclusion
Newmont has more leverage than the Noyem Galamsey operators in this negotiation due to its land title ownership of the concession, its strong financial resources as well as a good BATNA.
However, the Noyem Galamsey operators do have some important sources of power and may provide an excellent opportunity for Newmont to gain legitimacy with regards to CSR, community relationship building

10. Conclusion
Newmont has more leverage than the Noyem Galamsey operators in this negotiation due to its land title ownership of the concession, its strong financial resources as well as a good BATNA.
The common ground for both sides is the environmental issue and this should foster good working relations and engender brainstorming to come to a great solution that will be mutually beneficial to both sides.