This research deals with negotiation process and practices in African gold mining companies focusing in Eritrea: Bisha gold mining company. It has not been long since African nations got independence from their colonizers. The gold mining quest had been prone to corruption, struggle to cope with new and dynamic technological changes, mistrust among the official members, shortage of leadership experience, inefficient use of raw materials in the mining pit, difficulty in preparing the contract mining agreement and at the same time formulating mining laws and the complications go on and on. The solution for those problems would lie in successful negotiations. Negotiations not only does settle the matter of dispute but also guides the futuristic programs of the gold mining, considers welfare of the local households, maintains a healthy relationship between the host government and investing company or country. Thus in order to elucidate those problems mastering negotiations would be crucial. Based on this research’s findings, Eritrea is one of the African countries who are thriving at their early stages of development using their gold mining resources. The statistics shows that Eritrea have more than 15 mining pits, by which most of them are engaged in an active gold mining activities. In addition, arranging the gold mining law starting from mining license, appropriate taxes, government revenue, and access to foreign currency, royalty payment and the autonomy to repatriate funds is vital. Furthermore, accessing the adverse effects of gold mining beginning from environmental degradation (water, soil and air pollution), deforestation, erosion, abusing human resources and their health is also decisive. Therefore, a mining contract in its final stage entails the macro-economic factors like political, economic, social, technological, environmental and legal issues.
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