BEYOND COST AND PRODUCTIVITY: INTEGRATING ESG INTO MINING CONTRACTOR ASSESSMENT FOR SUSTAINABLE MINING OPERATIONS

Rikko Denia

doi:10.59003/nhj.v6i2.2233

Authors

Rikko Denia Perbanas Institute

DOI:

https://doi.org/10.59003/nhj.v6i2.2233

Keywords:

contractor assessment; decarbonization; ESG; mining contractors; sustainability; sustainable mining.

Abstract

Mining contractor assessment has traditionally focused on operational performance indicators such as cost competitiveness, productivity, fleet capability, safety performance, and financial strength. However, the mining industry is currently experiencing a significant sustainability transition driven by Environmental, Social, and Governance (ESG) expectations, decarbonization commitments, regulatory pressures, and increasing stakeholder scrutiny. These developments have expanded the criteria required to evaluate contractor performance and long-term competitiveness. This study aims to develop a conceptual framework for integrating ESG considerations into mining contractor assessment. A conceptual literature review approach was employed by examining recent studies on contractor evaluation, sustainable mining, ESG implementation, and sustainability management. The analysis indicates that traditional contractor assessment criteria remain important but are no longer sufficient to address emerging sustainability challenges. The findings suggest that future contractor evaluation should incorporate additional dimensions including ESG maturity, governance capability, decarbonization readiness, digital capability, and innovation capability. Based on these findings, this study proposes an ESG-integrated mining contractor assessment framework that combines traditional operational criteria with sustainability-oriented capabilities. The framework contributes to the literature by extending conventional contractor evaluation approaches and introducing the concept of future-ready mining contractors. Practically, the framework can assist mining companies in improving contractor selection, evaluation, and development processes while supporting sustainable mining operations.

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