Risk and Sustainability in the Case of the Saudi Arabian Mining Industry

Abstract

The Kingdom of Saudi Arabia is undergoing economic change, as it moves from an oil-based economy towards a wider, more sustainable economy. Part of the new economy involves the exploitation of the rich mineral resources of the country, including phosphate mining, which is examined in this study. Drawing on the literature, it was observed that Enterprise Risk Management and Corporate Social Responsibility are relatively new concepts especially in the case of KSA, and consequently there is scant knowledge regarding their application in a developing economy. In order to further investigate the prevalence of these tools and practices within the industry, the case of Wa’ad Al-Shimal Project has been referred. This study answers three specific research questions; 1, How does Enterprise Risk Management (ERM) impact on organisational performance? 2, How does Corporate Social Responsibility (CSR) impact organisational performance?, and 3, How does integration of ERM and CSR impact organisational performance? To answer these questions, the study used a multi-method design on three levels (global or macro level, national or meso level, and local or micro level). The data was collected form two online surveys (macro and meso level), a case study from literature on four mines, and interviews and focus groups at micro level.
The findings of the study demonstrated that the industry is trying to become more sustainable and is increasingly seeing the benefit of an integrated approach to ERM and CSR. The main contribution of this study is not unique in the KSA, but also to developing economies where both ERM and CSR are new ideas. The new understanding can be used to demonstrate to other mining projects in the kingdom and elsewhere the performance improvements that can be achieved by integrating ERM and CSR. The study also highlights the similarities in the risks faced by mining projects of all types throughout the world, and therefore includes an overview of international initiatives such as the ICMM and IRMA. These international frameworks and initiatives can be used in conjunction with ERM and CSR to ensure that international mining is as safe and sustainable as possible.

Date of Award	2 Jan 2024
Original language	English
Awarding Institution	University of Portsmouth
Supervisor	Risto Henrik Aleksander Talas (Supervisor) & Sara Hadleigh-Dunn (Supervisor)