Developing a New Conceptual Framework of Bauxite Ore Supply Chain using : A Critical Review of The Underlying Theories Leonard Manurung, Gatot Yudoko, Mursyid Hasan Basri
School of Business and Management, Bandung Institue of Technology, Indonesia
Abstract
Sustainable development goals (SDGs) is an interesting topic if we understand how much mining can contribute to community, not just discussing how mining destroys the landscape as people say. This study discusses how to maintain the sustainability of bauxite ore supply chain as raw material for Refinery Alumina. The landscape and areas will be changed when mining is carried out, due to forest clearing which may generates a displacement of human and animal habitats, changes the existing order, the social life who were originally farmers to be industrialist society. This fundamental changes force miners to ensure mining must be efficient, effective and sustainable to benefit people lives. The appropriate conceptual framework of bauxite ore supply chain is needed to ensure mining operations can be sustainable and contribute to the achievement of SDGs. Soft System Methodology (SSM) is chosen with assumption that new concept requires softer approach as it involves the sensitive sides of human life. This paper focuses on the theory underlying the bauxite ore supply chain and explaining how important it is to be used as the basis of the new framework. Supply chain legitimacy theory is used as a basis for developing a new conceptual framework to obtain what is desired systematically and culturally feasible in supporting SDGs. The literature review in this research refers to issues that commonly occur in mining, the main drivers of these issues are investigated, such as operational sustainability, corporate social responsibility, mining operational issues and sustainable development goals in mining.
Keywords: Mining, Supply-Chain-Management, Sustainable-Development-Goal, Soft-Systems-Methodology, Legitimacy Theory
