Implementation of Circular Economy in a Developing Economy’s Mining Industry Using Institutional Theory: The Case of Namibia

Abstract

Despite the global focus on sustainability, transitioning from linear to circular production systems is slow in the mining sector of most developing economies like Namibia. However, mining plays a crucial role in supporting the livelihoods of local communities. Furthermore, existing literature indicates that the potential for regenerative production systems using the remanufacture and recycle approach remains low and limited within the mining and developing economies. Institutional theory can help reveal the reasons for the slow take-up of the regenerative circular economy models in mining. This study uses a unique dataset of 40 semi-structured interviews with key players in the mining sector of Namibia to understand the current phase of circular economy adoption and the role played by institutional pressures in the process of institutional isomorphism, when companies would display a similar level of practices within a shared institutional environment. The findings reveal: (1) 72.5% of participants believe that Namibian mines are adoption-decision phase—a beginning stage of circular economy adoption; (2) companies are reliant on heavy government participation through policy/legislation and tax incentives is recommended; (3) the ranked order—coercive, normative, and mimetic pressures—describes their significance among key actors, for the successful adoption; and (4) proactive implementation and a mindset shift towards circularity is needed to meet emerging expectations on social and environmental concerns in mining.