Financialization and Value-based Control: Lessons from the Australian Mining Supply Chain

Lead firms operate on multiple scales, and although their corporate functions may be globally organized, they are anchored in various territories through the formation of relations with local suppliers, some of whom have specialized knowledge, capabilities, or technologies that are essential to the lead firms’ business activities. Global value chain and global production network analyses have recognized that financialization is increasingly driving the way that lead firms coordinate their relationships with supplier firms. The contribution of this article is to unpack the mechanisms that lead firms adopt to govern their supply chains in the context of financialization and the implications this has for the territorial embeddedness of lead firms. The boom–bust cycle of mining, arising from massive fluctuations in global commodity prices, provides a revealing context in which to explore the changing agendas of financial markets and their implications for lead firm connections to territory. This article examines the mechanisms lead firms use to coordinate relations with local suppliers in the Queensland coal industry, which accounts for 50 percent of international trade in metallurgical coal and which has evolved in the context of the most recent boom–bust cycle of global coal prices

The supply chain of the mining industry : the case of copper mining

Purpose: The aim of this article is to identify processes and recognise determinants in the copper mining industry supply chain creation and activity taking into account the influence of COVID-19 pandemic. Design/Approach: The research was conducted using qualitative methods. As part of the research procedure, process analysis was carried out using the method of mapping processes in the mining industry supply chain (on the example of copper mining). To analyse and evaluate the examined processes were presented in the form of graphical maps developed using the ADONIS software. A case study was used to show the specificity of the studies case (copper mining supply chain) and accompanying phenomena. Findings: The results of the study indicate that the coordination and integration of logistics processes has a significant impact on the mining supply chain. It is necessary to point out that the mining processes are separate from production processes. The individual tier of copper mining supply chain has their specific determinants that can be identified in the following groups: natural and geological, political, economic, legislative, social, environmental, and technological. The COVID-19 pandemic increased the intensity of the search for new technologies, human security, remote communication processes and process tracking tools; it also increased the need for cooperation and searching for cooperative solutions regarding sustainable development and the circular economy. Practical Implications: The results can be used to improve the operation of the supply chain. The conducted analyses have significant practical implications for the design of efficiency, security, and resilience of supply chains. Originality/Value: The comprehensive analysis of the supply chain creates opportunities for comprehensive improvement of both the entire system and its individual components.peer-reviewe

A mathematical model for the optimization of the non-metallic mining supply chain in the mining district of Calamarí-Sucre (Colombia)

This article presents a mathematical model of the Supply chain of non-metallic mining. The model considers uncertainty scenarios in materials, elements for capacity planning in a multilevel chain and with multiple products. The mathematical model is collaborative and maximizes the profits of the actors in the supply chain. The model is implemented in Calamarí-Sucre mining district (Colombia). The scenario is applied to the extraction, processing, storage, and distribution of limestone. To solve the model, the GAMS software was used through libraries of relaxed mixed nonlinear programming - RMINLP and the DICOPT solver. The results indicate that the greatest benefits occur in a scenario of the high provision of raw materials. The equity in the economic benefits show a dynamics of vertical integration in the sector. The model applied to non-metallic mining complexes helps determine optimal strategies and decisions in different echelons

Assessing the Challenges to Sustainable Mining: A Supply Chain Perspective (A Case of Li Tong Mining Company in Ghana)

The mining industry contributes significantly to the economic growth of the country however frequent occurrences of collapsed pits, less regard for the disposal of waste into river bodies, poor service conditions to staff of small- scale mining companies and poor corporate social responsibility to mining communities have raised a lot of international concerns. These challenges can be highly minimized when the mining industry shifts from unsustainable patterns of operations. The high cost of sustainable operations and many other challenges are key de-motivational challenges to the adoption of sustainable practices.The study revealed that management and staff of the industry have little knowledge in sustainable mining practices whilst others perceive a low senior management support. The researchers found a positive effect of the challenges on their inability to practice sustainability and recommend a periodic rigorous training for all staff and management of all small scale mining companies and also recommend that the Minerals and Mining Act and the Environmental Protection Agency (EPA) Act are implemented to the later. Keywords: Sustainable development, Mining, Supply Chain Management, Operations Management, Environmental Management

Unlocking economic prosperity in the Zambian Copperbelt

The Copperbelt province has been the growth engine of Zambia since independence. It was the nation’s mining and industrial hub, accounting for all of Zambia’s large-scale copper mining in the early 2000s. It continues to account for nearly a quarter of national GDP, and per capita GDP is the 3rd highest in the country. However, from 2015 to 2022, the Copperbelt’s economy has contracted, averaging a real GDP growth rate of -1.0% – four percentage points below the national average – ranking lowest out of all provinces. Moreover, over the same period, poverty increased by 17% – seven percentage points above the national average. Despite the growth challenges, the Copperbelt harbours significant potential to drive Zambia’s economic transformation. The global energy transition has reinvigorated interest in the province’s copper mines, and there is potential to increase what the Copperbelt – and Zambia, more generally – get out of their operational mining base. The province also boasts the country’s highest urbanisation and education rates, and has infrastructural and geographical advantages, positioning it well to reclaim its status as an industrial hub. However, unlocking this potential will be challenging. While Zambia relies heavily on natural resources, especially copper, this reliance is heightened in the Copperbelt, where mining represented nearly 40% of GDP in 2013, and continues to account for one-third of national copper production. While resource rents can contribute to economic growth, overreliance on natural resources creates a myriad of challenges. These include, among others, revenue volatility, rent-seeking, institutional weaknesses and corruption, and the so-called Dutch Disease – where natural resource revenues can hurt other sectors by causing inflation and/or currency appreciation. Consequently, regions with abundant natural resources tend to have unequal patterns of growth, worse development outcomes than their non-resource-rich neighbours, and poor development in non-resource sectors. Given the substantial challenges and opportunities that the province presents to propel Zambia to middle-income status, the government of Zambia has requested the IGC to summarise key economic trends in the region and outline policy options on how to approach regeneration

Commodities and Linkages: Industrialisation in Sub-Saharan Africa

In a complementary Discussion Paper (MMCP DP 12 2011) we set out the reasons why we believe that there is extensive scope for linkage development into and out of SSA’s commodities sectors. In this Discussion Paper, we present the findings of our detailed empirical enquiry into the determinants of the breadth and depth of linkages in eight SSA countries (Angola, Botswana, Gabon, Ghana, Nigeria, South Africa Tanzania, and Zambia) and six sectors (copper, diamonds, gold, oil and gas, mining services and timber). We conclude from this detailed research that the extent of linkages varies as a consequence of four factors which intrinsically affect their progress – the passage of time, the complexity of the sector and the level of capabilities in the domestic economy. However, beyond this we identify three sets of related factors which determined the nature and pace of linkage development. The first is the structure of ownership, both in lead commodity producing firms and in their suppliers and domestic customers. The second is the nature and quality of both hard infrastructure (for example, roads and ports) and soft infrastructure (for example, the efficiency of customs clearance). The third is the availability of skills and the structure and orientation of the National System of Innovation in the domestic economy. The fourth, and overwhelmingly important contextual factor is policy. This reflects policy towards the commodity sector itself, and policy which affects the three contextual drivers, namely ownership, infrastructure and capabilities. As a result of this comparative analysis we provided an explanation of why linkage development was progressive in some economies (such as Botswana) and regressive in others (such as Tanzania). This cluster of factors also explains why the breadth and depth of linkages is relative advanced in some countries (such as South Africa), and at a very nascent stage in other countries (such as Angola)

Orchestrating backward linkages from the extractive sector to other productive value adding sectors : a case study of the mining and the manufacturing industries in Zambia

The quest for natural resource-based industrialisation has continued in many countries, particularly in Sub Sahara Africa. Zambia, a resource rich country, mainly dependent on copper for its exports, has been trying to industrialise with limited success. Recently, there has been renewed emphasis on leveraging the growth recorded in the mining industry to develop other economic sectors. However, the focus of the discourse has mainly been on building effective fiscal linkages. In this thesis, I argue that beyond fiscal linkages, Zambia can develop the local manufacturing industry through backward linkages from mining to manufacturing given the huge manufactured input demand in the mining sector. I investigate factors driving linkage development and establish that government, lead mining companies, local manufacturing firms, private sector associations and donors all have roles to play in the process. While government has the responsibility of putting in place the appropriate policy and regulatory framework to encourage local procurement, as well as create a conducive environment for attracting investment and fostering development of manufacturing firms, lead mining firms could contribute by ensuring they make it easy and provide adequate procurement opportunities to local manufacturing firms. They could also contribute by using part of their profits to implement development activities and corporate social responsibility programmes geared towards building capacities of suppliers to meet their drivers of procurement decisions. Further, local manufacturing firms can play a role by adopting strategies that help them upgrade capabilities to meet the key supply requirements for the mining industry. Associations too can play a significant role. Among other things, the Zambia Chamber of Mines can contribute to this effort by ensuring that a common approach with regard to local procurement is adopted by the mining firms thus making easy for local manufacturers to do business with the mines. The Zambia Association of Manufacturers can play the role of policy advocacy, coordinate the response and engagement from the manufacturers as well as stage activities that facilitate the building of business relations with mining firms. Donors can work with government in improving the policy environment, support local companies' capacity upgrading efforts as well as work with associations in their advocacy and other activities geared towards increasing valued-added local procurement

Key Success Factors for Integration of Blockchain and ERP Systems: A Systematic Literature Review

© 2024 The Author(s). Published by ELSEVIER B.V. This is an open access article distributed under the terms of the Creative Commons Attribution License (CC BY), https://creativecommons.org/licenses/by/4.0/Blockchain technology offers immense potential for increasing efficiency by streamlining business operations. However, blockchain implementation is disruptive and requires high capital organizational processes as it fundamentally re-engineers and automates business processes. By integrating blockchain with Enterprise Resource Planning systems (ERPs), organizations can enjoy the benefits of blockchain adoption with minimal disruption to their business model. The resources regarding integration of blockchain systems and ERP are scarce and dispersed as their applications are in different niches. Thus, there is a need for a study of literature that investigates blockchain and ERP integration and find its key success factors. This systematic literature review (SLR) investigates the key success factors of blockchain and ERP integration and finds the context of integration to derive meaningful insights regarding its application in different functional areas. A list of key success factors is identified. They could be broadly classified into three contexts – technological, organizational, and regulatory. Also important is the environment and sustainability of the integration. This study was able to conclude that the integration of ERP systems with blockchain will enhance the capabilities of current ERP systems by providing value propositions of the decentralized ledgers such as increased transparency, trust, and process automation.Peer reviewe