Mining Firms Research Articles

The State of Corporate Social Responsibility (CSR): A Framework to Promote Community Gains from Mines in North-Western Province of Zambia

The study explores the current state of CSR exhibited by mining firms in North-Western province of Zambia. An argument is made that mining firms are not doing enough for the province through their CSR programs. The study uses content analysis to examine sustainability reports of two leading mining firms in the North-Western province of Zambia namely, Barrick Gold Corporation (BGC) and First Quantum Minerals Limited (FQML). Thereafter, the study engages various stakeholders through Focus Group Discussions (FGDs), interviews and a survey questionnaire to probe deeper the results of the content analysis and corroborate the evidence obtained from the mining firms. The study employs statistical methods and thematic analysis to analyze the primary data collected from the respondents. The study results indicate that the current state of CSR exhibited by the mining firms neither meets the expectations of the people in the province nor promotes gains in the host communities. CSR programs are only used to maintain the social license of the mining firms and to legitimize their existence in pursuit of maximizing profitability of the firms. The study contributes to the CSR literature by developing a framework that promotes community gains from CSR discharged by mining firms. The study results may also help the mining industry regulators to formulate future social and environmental responsibility indicators that may encourage mining companies to disclose more useful information to enhance the “quality” of disclosures in the mining industry. The two-stage data collection and analysis methods of content analysis and thematic analysis, together, add qualitative depth to our analysis which may help relevant stakeholders to improve their understanding of CSR practices in the mining industry.

Determinants and convergence of biodiversity or extinction disclosures of mining firms in Africa

This study probes into the biodiversity disclosure practices of mining firms in Africa, the determinants and the evidence of convergence using information economics analysis. Data was sourced from 21 mining firms covering the period 2006 to 2019 operating in Morocco and South Africa with various mine sites owned in other countries like Ghana. Using a combination of panel-corrected standard errors regression, logistic regression and the test of beta and sigma-convergence, the study found that there is a moderate level of biodiversity disclosure across African mining firms and there is both beta and sigma-convergence. The study found that board size enhances disclosures on all biodiversity indicators, viz, biodiversity disclosure index, 304-1 (proximity of sites to biodiversity hotspots) being the most disclosed, followed by 304-3 (habitats protected or restored), 304-4 (IUCN Red List Species) and 304-2 (impact of activities on biodiversity). Generally, board size drives biodiversity disclosures but board independence does not. Additionally, the membership of the United Nations Global Compact, a multistakeholder initiative significantly affects every disclosure indicator. Financial leverage drives the disclosure of 3 indicators. Other factors like firm size, multinational enterprise status, profitability, cross-listing, human capital development, and gross domestic product were explored. The results of the analyses are relevant for practitioners, policymakers, regulators and academics alike.

The Comparison Between Random Forest and LSTM Models Based on the Gold Price Prediction

The gold price forecast is crucial for financial institutions, investors, mining firms, and associated enterprises. Precise price prediction is especially important in the gold market because of its volatility and unpredictability; this has important consequences for strategy formulation and decision making. In order to give practitioners a better prediction technique to increase the accuracy of market trading, the aim of this study is to assess the predictive effectiveness of the two models in predicting the gold market. The study forecasts gold prices using the Random Forest and Long Short-Term Memory (LSTM) models, comparing their performances using five assessment metrics. The end findings prove that the Random Forest method outperforms the LSTM model in comparison. In particular, the Random Forest model predicts more accurately and with less inaccuracy. The study finds that, while the Random Forest model is more accurate, both the LSTM model and the Random Forest model are appropriate techniques for gold market projections. To increase the precision and consistency of the predictions, future studies will keep refining the LSTM model and look for causes for its subpar performance.

The Impact of Debt Policy, Dividend Policy, and Investment Decisions on Value Creation (Study of Coal Mining Companies listed on the IDX for the 2018-2022 Period)

The aim of this reseacrh is to identify and analyze the combined impact of debt policy, dividend policy, and investment decisions on value creation, the influence of debt policy on value development, and the influence of dividend policy on value creation. The study also aims to investigate the influence of investment choices on value generation. We conducted this study at coal mining businesses listed on the IDX between 2018 and 2022. This study had a sample size of seven coal mining companies. The preliminary findings indicate that debt management has a significant and favorable influence on value generation. Similarly, the policy regarding dividends also has a positive and significant impact on value creation. Furthermore, investment decisions have a positive and significant impact on value creation for coal mining firms listed on the IDX between 2018 and 2022.

Pengaruh Profitabilitas, Likuiditas dan Ukuran Perusahaan Terhadap Struktur Modal

Capital structure refers to the decision-making process regarding funding sources and the arrangement of funding options. In the mining sector, companies require substantial capital for resource exploration and corporate development. The study titled “The Impact of Profitability, Liquidity, and Company Size on Capital Structure” aims to investigate how profitability, liquidity, and company size influence the capital structure of mining firms listed on the Indonesia Stock Exchange. Utilizing a quantitative approach with secondary data, the research population comprises mining companies listed from 2020 to 2022. Through purposive sampling, 35 companies were selected for analysis. Multiple linear regression analysis was employed to analyze the data. Findings indicate that profitability negatively affects the capital structure of mining companies, as higher profits prompt firms to utilize retained earnings, thereby reducing the capital structure value. Liquidity also negatively impacts the capital structure, as companies with high liquidity levels tend to utilize assets to meet short- term obligations, consequently reducing the capital structure. Conversely, company size positively influences the capital structure, with larger companies exhibiting larger capital structures due to increased debt, while smaller companies have smaller capital structures.

Determinant Factors of Firm Value in Coal Mining Firms: Evidence from Indonesia

This research investigates how firm value in coal mining companies is influenced by profitability, leverage, and corporate governance between 2014 and 2020. Utilizing a quantitative approach with a descriptive methodology, the study analyzed secondary data from 21 coal companies, totaling 147 data points, sourced from the Indonesian Stock Exchange (BEI). Findings reveal that Debt-to-Equity Ratio (DER) and the presence of an Independent Board of Commissioners positively affect firm value. Conversely, managerial ownership and the Audit Committee's impact on firm value were negligible, due to limited managerial stakes and inadequate audit committees. Return On Assets (ROA) did not affect firm value, likely due to significant data variation and decreasing trends. The study suggests that a robust corporate governance structure ensures informed decision-making and minimizes strategic errors. Management should focus on enhancing operational efficiency to boost profitability.

Nexus between Western and Chinese crude oil mining firms: An examination of modalities, practices, and socio-ecological ramifications

This study examines the operational methods, procedures, and socio-ecological impacts of Western and Chinese crude oil extraction industries, focusing on regional variations. Due to institutional dynamics, the study reveals distinct emissions patterns among state-owned sectors in China and the Western Union region. This was achieved by employing DID regression models, using a sample of 60 crude oil mining companies. Furthermore, the data demonstrates that intensifying research and development endeavors directly correlate with pollution reduction, indicating that technological advancements could foster a greater sense of environmental consciousness. Nevertheless, larger corporations emit more pollution, substantially utilizing resources and manufacturing. Both nations prioritize the government's role in reducing negative environmental impacts caused by pollution by implementing regulatory frameworks. Additionally, they focus on achieving long-term ecological sustainability through corporate social responsibility (CSR) initiatives. The paper suggests government involvement is necessary to enhance socio-ecological conditions at crude oil mining sites in Western and Chinese regions.

Arc of avoidance: An analytical framework for analysing mining companies’ actions in the global South

Given the relationship between mineral extraction and conflict, human rights violations, and environmental degradation, there is an urgent need to examine how to mitigate harm in a more mineral intensive future. Thus far the literature has focused on two areas, the governance gaps present in the global governance of multinationals and the private governance scholarship which examines the rule-making power of mining firms. This paper argues that this story of mining firms' power is incomplete. Mining MNCs not only make rules, they also actively avoid regulations put in place to temper their impact on communities. To address this, the paper develops a chronological ‘arc of avoidance’, detailing the methods by which mining firms evade their fiscal and legal obligations to host communities. These methods include negotiation of tax concessions, tax avoidance, closing avenues of redress, and abandonment of mines without recourse. Using the case study of Paladin Energy, the paper confirms the power of large MNCs over governments and citizens of the Global South. It demonstrates that mining MNCs engage in avoidance tactics throughout the life of a mine, and that their power over host states does not weaken once investment has been made. Such tactics lead to entrenched negative outcomes for mining communities in the Global South. The findings reveal the full extent to which firms accrue the benefits and avoid the consequences of mineral extraction throughout the production process, and are of particular significance as we shift to extracting the resources required for the uptake of renewable energy.

The Effect Of Political Connections, Transfer Pricing, and Firm Size On Tax Avoidance Practices

Several companies engage in tax avoidance, a strategy aimed at circumventing tax expenses. Within this study, tax avoidance is quantified through Cash ETR (Effective Tax Rate). The objective is to empirically elucidate the impact of political affiliations, transfer pricing, and company size on tax avoidance among mining firms listed on the Indonesia Stock Exchange (IDX) from 2018 to 2021. Employing a purposive sampling method, 113 samples were meticulously chosen to represent the population. Utilizing multiple linear regression analysis, the research revealed that transfer pricing significantly influences tax avoidance practices, while political connections and company size do not demonstrate such an effect.

Capabilities, sustainability, and innovation in mining value chains

Abstract The original research presented in this Special Section analyzes different aspects of the potential offered to mining firms in developing countries by new demands for solutions to face environmental, social and technological challenges. The evidence is drawn from extensive fieldworks and comparative econometric research on Latin America, and suggests that the existing opportunities will need to be pursued with firm-level efforts and active regulatory and innovation policies.

Corporate social responsibility, reputation and performance in the Zimbabwe’s mining sector

Orientation: The Zimbabwe’s mining sector regrettably has a poor corporate social responsibility (CSR) record, which has earned the mining corporations a bad reputation and poor business performance.Research purpose: The study investigated the relationship between CSR, corporate reputation (CR), and performance in Zimbabwe’s mining sector.Motivation for the study: The implementation of CSR programmes in the Zimbabwean mining sector has been inconsistent over the years, with some firms virtually uninvolved in such activities. The impact of CSR in that sector remains largely unexplored.Research approach/design and method: The study was quantitative, involving a survey of 330 managers and other professionals working in Zimbabwean mining sector firms. The collected data were analysed using correlation and regression analyses.Main findings: Two CSR dimensions, namely, stakeholder CSR and ethical CSR, contributed to CR. Corporate reputation exerted a positive impact on social performance and negatively towards operational performance.Practical/managerial implications: The study provides practical solutions to mining firms on which CSR practices are essential for strengthening both CR and performance.Contribution/value-add: The study represents a novel effort to model the relationship between CSR, CR and the performance of Zimbabwe’s mining sector. It offers the basis for future research studies on CSR practices and CR in several sectors of the Zimbabwean economy.

Does leverage influence the impact of pay gaps on performance in listed retail and mining firms? Evidence from South Africa

PurposeAgency theory motivated this study, posing that leverage mitigates the agency problem. The aim was to examine whether leverage influences the relationship between executive-employee pay gaps (EEPGs) and firm performance. The study was conducted in the mining and retail sectors between 2012 and 2021.Design/methodology/approachTwo EEPGs were featured based on their executive fixed pay and variable incentives accumulation. Proxies of firm performance were headline earnings per share; return on assets; earnings before interest, tax, depreciation and amortisation; and return on stock price. Data were collected from 76 JSE-listed firms in the retail and mining sectors and analysed using the two-step generalised method of moments.FindingsThe results revealed the hybrid implication of the pay gap for firm performance in the retail and mining sectors of South Africa, depending on the performance measures emphasised. More importantly, the study shows that with the moderating effects of leverage, firms can improve their performance while shrinking the pay gap.Practical implicationsThe results have implications for policy addressing income inequality, debt management, executive compensation and regulatory reforms in South Africa concerning productivity and remuneration decisions.Originality/valueThe article provides specific literature for retail and mining industries on pay gaps, shows that it is possible to reduce the pay gap without compromising performance and suggests a new measure of performance that is more attuned to pay gap effect measurement.

Corporate Social Responsibility in the Mining Industry: Exploring Perspectives of Host Communities in a Developing Country

This paper aims to explore the social and environmental issues that are of priority/importance to the mining host communities in a developing country-Ghana. To explore the social and environmental issues that are of priority/importance to the mining host communities in a developing country, this study used Ghana as a test case and conducted 18 in-depth, semi-structured interviews with respondents drawn from the mining host communities of Prestea and Bogosu. The findings show that members of the host communities–the group deemed to be the most powerful and legitimacy-conferring stakeholder placed pressure (i.e., expectations and/or concerns) on the mining firms that operate in the host communities in terms of their social and environmental performance. Five themes, i.e., general categories, emerged from the data of this study in terms of the social and environmental issues that are of priority/importance to the host communities: a prioritisation of community development projects, environmental/sustainability-related issues, employment of indigenes/local enterprise development, communication of social responsibility information and preservation of local culture and tradition. This study is an exploratory study based on only 18 in-depth, semi-structured interviews, i.e., using purposive sampling. The implication of this study is that because developing countries have similar socioeconomic, cultural, and geopolitical features, the finding of this study may be relevant to researchers and policymakers in developing countries where multinational mining companies (MMCs) operate. Although mining communities’ awareness regarding corporate social responsibility has increased in recent decades, to date, we know little about the social and environmental issues that are of priority/importance to the host communities of mining firms in developing countries.

Mining and indigenous communities in Southeast Asia: Examining the social impact of mineral development

Concerns have been expressed concerning the social effect of mining operations on indigenous people in Southeast Asia, calling for a closer look at the matter. This study examines the consequences of mining on indigenous populations from a social, cultural, and economic perspective. The years 2005–2020, when mining projects in the area were active, are the focus of the research.A decision-making model is used to handle the difficulties and complexity of mining in this setting. This approach combines economic and mathematical concepts to maximize mining projects with respect for indigenous populations' interests. The study uncovers the many impacts of mining development on local indigenous people via in-depth data analysis, stakeholder participation, and field research. Land ownership, cultural preservation, economic viability, and ecological stability are highlighted. The findings highlight indigenous populations' difficulties, such as relocation, cultural loss, and environmental destruction.The results also highlight the significance of indigenous people's social well- being prioritized in decision-making processes alongside economic factors. The research shows that ethical mining operations that adhere to these guidelines might lessen the industry has toll on society.This study helps policymakers, mining firms, and other stakeholders better understand the social effects of mining on indigenous people in Southeast Asia.

Examining the Sustainability Report, Financial Performance, and Value of Mining Companies in Indonesia

This study employs a quantitative approach to explore the intricate interplay among Sustainability Reports, Financial Performance (measured by Return on Assets - ROA), and Firm Value (quantified by Tobin's Q) in Indonesia's dynamic mining industry. Employing purposive sampling, data from 75 samples encompassing 25 mining businesses listed on the Indonesia Stock Exchange (IDX) is examined over the 2020-2022 period. Utilizing statistical analysis, the study employs the Partial Least Squares (PLS) data processing application for partial regression analysis. The findings highlight a substantial and favorable impact of Sustainability Reports on Firm Value, underscoring the growing acknowledgment within Indonesian mining firms of the pivotal role played by both financial and non-financial disclosures. Intriguingly, the study uncovers that Financial Performance, as gauged by ROA, lacks a discernible influence on Firm Value. This nuanced insight suggests a shifting landscape where stakeholders increasingly prioritize comprehensive reporting beyond conventional financial metrics. The research sheds light on the evolving nature of the Indonesian mining sector, emphasizing companies' recognition of the significance of transparent reporting practices. These revelations align with global sustainable development goals, emphasizing the central role played by mining companies in advancing these objectives. In navigating this complex dynamic, the study underscores the crucial role of Sustainability Reports in shaping perceptions and values of mining firms in Indonesia.

Corporate social responsibility and total factor productivity: the case of European mining industry

The aim of this research is to investigate the effect of corporate social responsibility (CSR) on total factor productivity (TFP) in the European mining industry, considering micro- and macroeconomic indicators of the relationship between CSR and TFP. Employing data from 40 European mining companies from content analysis, CSR Hub, and the World Bank between 2018 and 2021, this paper utilizes a combination of Data Envelopment Analysis (DEA) and panel regression techniques to test the research hypotheses. The findings suggest that the TFP of European mining firms is positively affected by CSR initiatives implemented by the companies. Also, the empirical results depict that the CSR-TFP relationship is mainly established on institutional criteria. The results also indicate that CSR-related factors, namely, transparency and reporting, training, health and safety, and resource management, are the impacting indicators. The study broadens the horizons of this line of research and can be beneficial to CEOs, managers, experts, policymakers, decision-makers, and economists in the field of mining who are willing to promote responsible and sustainable mining.

Green investment in South Africa: A perception of overinvestment or underinvestment in energy and mining firms

This paper investigates green investments in energy and mining firms in South Africa to determine the efficiency level in terms of overinvestment and underinvestment. The general Richardson residual measurement model is employed, and an enhanced model is created by including variables that influence green investment, such as political connections and pollutant emissions. Data from 17 companies (5 energy and 12 mining) were used because of the significant effects of their operations on the environment over the period between 2015 and 2022. The study findings show that, in comparison to the estimated optimal investment level, South African energy and mining firms are not consistent regarding their investment level. It interplays between underinvestment and overinvestment. However, both firms demonstrated the tendency to green investment inefficiency due to underinvestment recorded in the latter years of the sample period. The study provides understanding as regards green investment levels of energy and mining firms and hence recommends adequate oversight and formulation of environmental policy by the government to ensure green investment efficiency in line with both national and international policies and regulations to facilitate a sustainable environment.

Green inclusive leadership, green policy, and pursuit of sustainability in natural resources: A firm-level analysis in context of Ukraine-Russia war

China is one of the major trading partners of Russia and Ukraine. The country depends upon Russia and China to import a few of the key strategic products from the mining, agriculture, and energy sectors. This study explores the association between green inclusive leadership, green policy, and the pursuit of sustainability in the iron-ore mining industry in China, against the backdrop of the Ukraine-Russia war. This also examines the role of green policy robustness in the relationship between green inclusive leadership and the pursuit of sustainability. Further, our study determines the magnitude of green inclusive leadership in sustainability. We used the cross-sectional data of 102 firms from the Iron-Ore Mining sector of the People Republic of China. This study employed hierarchal regression for empirical analysis. Our findings of hierarchal regression analysis highlight that green inclusive leadership significantly impacts the sustainability of the iron-ore mining firms, whereas green policies positively reinforce those impacts on the sustainability of the firms. Our findings substantiate the significant moderating role of green policy in reinforcing the impacts of green inclusive leadership on the sustainability of the firms. Our findings suggest that the presence of well well-enacted green policy can help firms to augment the impacts of green innovation leadership on sustainability. In a nutshell, our research offers insights into how the iron ore mining industry can navigate the possibility of using green innovation leadership to achieve sustainable development.

Political Connection Effect towards Firm Value

Political Connection, or the connection that a firm have to the government, can be an interesting subject for accounting research. Political connection can give advantage to the firm. This study wants to determine the effect of existing political connection in a firm to the firm value. Political connection as the independent variable is measured by using dummy variable. While firm value as the dependent variable will be measured by Tobin’s Q. The data that are used in this study are secondary data of mining firms listed on the Indonesian Stock Exchange in 2017-2022 and also stock price information from Indonesian stock exchange website. In this study, purposive sampling is used where 37 mining firms are selected. The result of the study indicate that political connection does not have a significant impact on mining firms value. Thus, this study emphasize that investors have less interest on making political connection that mining firms have as a value

Pengaruh karakteristik perusahaan terhadap tax avoidance

This study examines the impact of firm characteristics on the practice of tax avoidance. The primary objective of this study is to examine the impact of profitability, leverage, liquidity, and business size on the level of tax avoidance among coal mining firms that are publicly listed on the Indonesia Stock Exchange during the time frame of 2019 to 2022. The study employed a quantitative approach and utilized a research design focused on establishing causal relationships. The information utilized for this research is categorized as secondary data. To determine the sample size utilizing the purposive sampling method, 44 data points were collected in total. The study utilized a documentation-driven approach to gather data. Descriptive analysis of classical assumptions and multiple linear regression analysis were utilized to analyze the research data. The results of this research suggest that there is no statistically significant relationship between profitability and tax avoidance. Nonetheless, it has been determined that both leverage and liquidity exert a substantial impact on tax avoidance. Conversely, it seems that the size of firm as an entity does not exert a substantial influence on tax avoidance. Tax avoidance is manifestly influenced by the concurrent presence of profitability, leverage, liquidity, and corporate scale.