The Situation:

Royal Dutch Mines NV suddenly has the potential to become Burkina Faso's biggest private employer. Recently the mining company literally stuck gold with the discovery of a rich deposit of the much sought-after metal in the North East part of the country, between Yalgo and Bolgande.

A deal has been worked out with the government for the mining rights for a period of 20 years; there are very few other stipulations, other than that "preference" be given to the employment of residents of Burkina Faso.Once the mine is operational it is expected to employ over 6,000 people directly and indirectly over this period. Given the current price of gold Royal Dutch Mines is anxious to begin work immediately and expect that with their method of open pit mining they should have the mine operational by late 2019 - but only if they begin the development right away. To work to this timeline RDM will need to bring many of their own engineering staff into the country as well as experienced equipment operators to start surveying, digging and transporting ore from the mine to a processing facility nearby.

Given RDM's long time involvement with a variety of mining operations in Malaysia and their strong relationship with their Malaysian workers, Royal Dutch Mines wishes to bring 200 of these employees into Burkina Fasso to start the mine's development. Since RDM is comfortable with the skills of these workers to operate the heavy extraction and earth moving equipment as well as the project management skills of several more senior staff, they have petitioned the government of Burkina Faso to allow them 200 work permits for these workers.

Since the government wants the mine to bring much needed royalties to its coffers and in the long run provide many jobs for its citizens, it has initially agreed to the permit request.

Meanwhile in Burkina Faso, impoverished citizens in general and parents in particular are desperate to find something for their unemployed, the majority of whom are young people, to do. "Some of our young people just get lost," says Asseta Ouedraogo at a community meeting in a village where near Yalgo. "They walk around from person to person, doing nasty things," she says.Another man speaks up. "People are shy to say it, but the word is 'prostitution,' he says. "Our children just go anywhere and get in trouble." After her 12-year-old daughter dropped out of school, Ms. Ouedraogo tried to help her to sell peanuts and snacks in the village. "She disappeared, she never brought back the money, she got lost for days," she says.

Across the country, most young people drop out of school at an early age. About 1.2 million children from the ages of 9 to 14 are out of the school system completely. When it comes to mining operations (of which there have been a few in the past in the country) thousands end up working in informal mining pits, digging for tiny flecks of gold or copper in crude holes that can collapse on them. "They do dangerous work and even die," says one father, Moumouni Sawadogo.

The government of Burkina Faso has attempted to address the problem of unemployment with a series of vocational schools which focus on usable skills such as sewing and motorcycle repair, but the schools are severely underfunded and without even the equipment necessary on which the students can be trained.

While the people of Burkina Faso - and especially those near the mines - see the jobs that could come as a potential benefit for their young people they are wary of the real intentions of a mining company. Moreover, they are uncertain of the impact the influx of foreign workers will have on their villages in the vicinity of the mine.

It is within this environment that the government of Burkina Faso now wishes to negotiate some "local content" requirements for the training and hiring of local employees for the commencement of the mine's development.

The Malaysian Negotiator:

You a seasoned manager of theMalaysian mining workers and have been promoted to various positions in the Royal Dutch mining operations. You started as labourer at the age of 14 and eventually reached the skilled position driving bull dozers and hydraulic excavators. You are a proud Malaysian who believes that your Malaysian countrymen will be a critical part of the mine's successful development in partnership with Burkina Faso workers. You also believe that Royal Dutch Mines have a responsibility to the social development and equal opportunity for all in the countries in which they operate.

You have always been a Royal Dutch employee and given the Dutch mentality for respecting their workers, you have enjoyed a long period of good relations with your employer.As Director of the company's Health and Safety department you are in one of the most senior positions of mine management which has involved you as a partner with your employer in mining developments all over the world. Consequently, you feel a strong loyalty to RDM for the standard of living that you and your family of several children now enjoy.

You have been selected by RDM to accompany the senior manager of the soon to be developed North Eastern Burkina Faso gold mining project on their trip to negotiate with representatives of Burkina Faso regarding the employment of Burkinabe in the mine's development. You have also been chosen because through your many years of employment with RDM, you have paid close attention to the company's standards for safety and the training of all employees. Moreover, you are proud of the safety record you have helped maintain within the company.It is likely that if you perform well in this venture, more important assignments will be offered as the company expands its operations in Africa.

Given your history and experience you see that the initial phases of the development of a mine as critical to the long-term success of the mining operation. You also strongly believe that if any mining development is undertaken without attention to the need for highly skilled workers, acting in accordance with stringent safety standards, it not only jeopardizes the lives of employees, but the reputation of the company undertaking the work.

By your standards, the development of the mine must only take place with the use of experienced personnel. You understand that they government of Burkina Faso wishes to relax these standards and in the initial phases of the mine's development employ many local residents.

It is with this experience and your company's interests in mind that you prepare to negotiate with the Burkina Faso representatives.