Negotiation Plan

Twin Lakes Mining Company

Hsin Chia Yeh

CMN -6060 –Negotiation, Mediation, Facilitation

Professor: Brendan Sullivan

Negotiation Plan

Assembling the issue:

1. Water quality issue: The Twin Lakes plant needs a lot of water to wash the broken

ore, but particles of iron ore and other impurities continue to be washed downstream.

Environmentalists insist on cleaning up wastewater from factories and ponds. Cost of

a filtration plant is estimated at 20 million.

2. Air quality issue: The whole process of ore mining, transportation and crushing will

generate a lot of dust. If control the large amount of dust that is generated

immediately around the factory, costing about $ 8 million. Besides, about half of the

roads are owned by the city; the rest are built specifically to transport ore and

materials. The cost of paving all roads is estimated at $ 4.8 million and annual

maintenance costs are $ 600,000.

3. Taxation issue: The factory is located within the city, and current taxes on urban land

are currently $ 800,000 per year. Also, some railway feeders are used to transport ore

into the factory that New York City continues to charge a flat annual fee of $ 400,000

for right of way. New York occasionally sells land to companies for prices ranging

from $ 2.2 million to $ 2.4 million.

Negotiation Plan

Negotiation Plan

Given the long-term solutions of Twin Lakes Mining and the people of Tamarack, all

the issues should be addressed. However, if companies deal with all these companies,

they will be in an irreversible financial crisis. We believe the water issue is the paramount

problem because this is the only issue unrelated with government, it must be deal with.

The air issue is ranked at secondary problem by the big cost for controlling dust, and the

last one is taxation issue. Both of second and last issue have more possibility to negotiate

with government. We recommend weighing the following factors to address each issue.

Second, we believe Tamarak should take care about half of railroad because government

own 50%. It means Tamarak will pay half maintenance and half building new

transportation cost. If Tamarak agrees with this scenario, we will recruit more employees

to offer more job opportunity. Finally, taxation issue, Twin Lakes will ask Tamarak sale

more land. Through this method, company could decrease land tax and increase more

property. Also, the imposition of land should decline to $30 millions.

Negotiations are favorable because 60% of the town's population works for Twin

Lakes Mining. In addition, donate 33% of the city's real estate tax. There is no reason
Negotiation Plan

to influence Twin Lakes company operation, the only problem is environmental issu.

This negotiation plan could lead a win-win situation.