SciELO - Scientific Electronic Library Online

vol.114 issue10Estimation of future ground vibration levels in Malmberget town due to mining-induced seismic activityFocal depths of South African earthquakes and mine events author indexsubject indexarticles search
Home Pagealphabetic serial listing  

Journal of the Southern African Institute of Mining and Metallurgy

On-line version ISSN 2411-9717
Print version ISSN 0038-223X


STEENKAMP, C.J.H.  and  VAN DER LINGEN, E.. Outsourcing in the mining industry: decision-making framework and critical success factors. J. S. Afr. Inst. Min. Metall. [online]. 2014, vol.114, n.10, pp.846-854. ISSN 2411-9717.

Theoretically, the main driver behind a mining operations' sourcing decision should differ from company to company, and within a company from project to project, but in reality it often relates to cost. Research confirms that there are a number of factors, including cost, to consider when choosing between in-house and outsourced mining. While the literature is rife with factors to consider, little information exists on how to apply these in practice and the relative importance of the different factors to be considered. A study was conducted to determine whether mining is truly a core competency for a mid-tier commodity specialist mining company. Furthermore, a decision-making framework for mining operations sourcing was developed, and the critical success factors that should be adhered to if outsourced mining is chosen were determined. The research showed that owner mining is not a core competency for the mining company investigated. A decision-making framework was developed using the order winner/order qualifier structure, which can be used to facilitate the mining sourcing decision. The most important tools at the disposal of a mine owner's team to manage a contractor miner are the social and output control mechanisms, according to the critical success factors study.

Keywords : insourcing; outsourcing; contractor; mining; decision-making; critical success factors.

        · text in English     · English ( pdf )


Creative Commons License All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution License