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Twin Lakes Mining Company

Twin Lakes Mining Company. Introduction:

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Twin Lakes Mining Company

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  1. Twin Lakes Mining Company

  2. Introduction: In this role-play, you will have the opportunity to negotiate a serious problem – a conflict between a mining company and the government of a small town regarding an environmental cleanup. While the issues in this scenario have been simplified somewhat for the purpose of this role-play, such conflicts between industry and governmental groups are typical.

  3. Procedure: • Your group will represent either the Twin Lakes Mining Company or the Tamarack Town Council. • Read and study the background information. • Meet with your group and go through the planning process. • Write down (on a 1 whole sheet of paper) your group’s self-assessment, sizing up the other party, and situation assessment.

  4. 5. Write down (on a 1 whole sheet of paper) the relevant information for each of the major issues. Set specific targets (i.e. what you want to achieve) and develop a strategy that will help you achieve those. 6. Negotiate with the other group and write down (on a 1 whole sheet of paper) exactly what was agreed upon by both parties. Have a representative of each side sign this document and present it to the rest of the class.

  5. Background Information: Tamarack • Major Industry: Iron Ore Mining • Year-round Population: 12,000 (approx) • 1,500 town residents work for Twin Lakes Mining Company • 33% of its real estate tax revenue (about $5 million) come from Twin Lakes • Town Council receives pressures from the local citizens to impose environmental controls on Twin Lakes

  6. Background Information: Twin Lakes • An open-pit, iron ore mine • The company is in major violation of water and air pollution quality standards • Total compliance with the cleanup regulations will cost the company over $18 million • Its low-grade ore and foreign competition in the steel market have significantly eroded the demand for ore

  7. Main Objectives: • Tamarack Town Council: • to uphold the concerns of its constituents (e.g. environmental protection) • Twin Lakes Mining Company: • to maximize profit in order to continue operations

  8. Major Negotiation Issues: Water Quality Air Quality Taxation of Company Land

  9. Format: Written Output 1 • Self-Assessment • (relevant information about your group) • Sizing-up the Other Party • (relevant information about the other group) • Situation Assessment • (relevant information about the scenario)

  10. Format: Written Output 2 • Relevant Information • a. Water Problem • b. Air Problem • c. Taxation • Target/Goal Setting • a. Water Problem • b. Air Problem • c. Taxation

  11. Format: Written Output 3 I. Terms of Agreement a. Water Problem b. Air Problem c. Taxation II. Signatures Twin Lakes Mgt Team Tamarack Town Council Members

  12. Discussion Questions: • How did you prepare for this role-play? What type of strategy did you decide to employ? • Did you set goals or targets that you wanted to achieve on each issue or the total package, and did you set “bottom lines” or resistance points? How did having these (or not having these) affect your negotiation effectiveness?

  13. 3. How satisfied are you with the final agreement (if you reached one)? What factors in your negotiation make you feel satisfied or dissatisfied with this outcome? 4. What did you learn from this situation that you feel you will want to continue (or try to change) in future negotiation situations?

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