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Tactical problems with strategic consequences: A case study of how petroleum hydrocarbon suppliers support compliance and reduce risks in the minerals sector

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  • Guerin, Turlough F.

Abstract

While there are tactical problems arising from using petroleum hydrocarbons, the strategic issues are considerably more material for the mining sector and society more broadly through their contribution to climate change. The supplied petroleum hydrocarbon life-cycle for refined products is a framework that enables structured engagement between supplier and customer on a range of sustainable development issues because it is an example of an input into the mining industry that affects the entire mining and minerals processing value chain. To support a transition to alternative energy sources on mine, mining and minerals processing companies are seizing the opportunity that petroleum hydrocarbon suppliers offer to their own businesses by engaging with them proactively. This study reports a case study of a mining company in eastern Australia that engaged with its petroleum hydrocarbon supplier using an engagement process based on human-centred design. The results illustrated the use of a human-centred design approach to supply chain engagement which re-oriented the supplier to take increased responsibility for fuel and lubricants impacts at the mine, and find alternative energy solutions. This study is an example of how industry self-regulation can be harnessed to drive incremental change at an operational level in the mining sector. In conclusion, the mining operation harnessed an existing supplier relationship to raise challenges posed by sourcing hydrocarbons, and to secure commitments from the supplier to improve their environmental performance in relation to supplied fuels and lubricants. Recommendations arising are for mining companies to capitalise on existing relationships with hydrocarbon suppliers to drive greater shared ownership of liabilities, as well as leveraging supplier capability to secure sustainable energy sources for mining operations. The case study illustrates the value of the time investment with proactive supplier engagement.

Suggested Citation

  • Guerin, Turlough F., 2021. "Tactical problems with strategic consequences: A case study of how petroleum hydrocarbon suppliers support compliance and reduce risks in the minerals sector," Resources Policy, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:jrpoli:v:74:y:2021:i:c:s0301420721003202
    DOI: 10.1016/j.resourpol.2021.102310
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    References listed on IDEAS

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