An analysis of critical risk factors of sustainable supply chain in the South African mining industry

Abstract: All over the world, the mining sector is gradually being considered accountable for the environmental, social and economic consequences generated by their internal operations and by their suppliers' operations. Sustainable supply chain management (SSCM) that is concerned with incorporating ecological, social and economic aims within a central company’s supply chain processes, has emerged as an approach for companies to enhance the three sustainability pillars (i.e. environmental, social and economic) results in their supply chains. However, the integration of sustainability within supply chain continues to be challenging in Global Supply Chains (GSC). In light of this, and given the limitations on the literature on the integration of sustainability practices within supply chain sustainability in mining sector particularly in South Africa, the primary goal of this study is to analyse critical risk factors for sustainable supply chain in the South African mining industry, which will assist decision makers in the mining sector regarding the factors affecting the sustainability of supply chain practices. The data used in this study was derived from primary and secondary sources. The secondary data for the study was derived from the review of literature. The primary data was obtained through the use of a structured questionnaire, which was distributed, to participants from the South African government, supply chain professionals in mining, supply chain specialists and managers. A total of 110 questionnaires were distributed with 100 responses, which represented a response rate of 90%. The data from the questionnaires formed the basis of this study. Frequency analysis and various statistics procedures were used to analyses the returned questionnaire data. Findings emanating from the survey revealed that the current state of mining sustainability particularly in South Africa with regard to supply chain is not taken into serious considerations by mining management, and there is also a lack of formal policies from the government that clearly state and regulate the use of land and other factors related to sustainability. This vacuum leads to a lot of industrial action in the mining industry, production interruptions and a decline in global competitiveness.M.Tech. (Quality and Operations Management