Green recovery strategies for the mining industry of India: lessons learned from the COVID-19 pandemic
| DOI | https://doi.org/10.1108/JABS-05-2021-0179 |
| Published date | 09 July 2021 |
| Date | 09 July 2021 |
| Pages | 428-447 |
| Subject Matter | Strategy,International business |
| Author | Ramaganesh Marimuthu,Bathrinath Sankaranarayanan,Syed Mithun Ali,Koppiahraj Karuppiah |
Green recovery strategies for the mining
industry of India: lessons learned from the
COVID-19 pandemic
Ramaganesh Marimuthu, Bathrinath Sankaranarayanan, Syed Mithun Ali and
Koppiahraj Karuppiah
Abstract
Purpose –This study aimsto find and evaluate the impact of COVID-19in India’s mining activities. From
the literature survey and inputfrom experts, 14 important factors and ten green recovery strategiesare
identified.These 14 factors and 10 strategies areexamined in a real industrial environment.
Design/methodology/approach –In this research study, fuzzy-complex proportional assessment is
used to compare the identified strategies with the selected factors. Based on the outcome, this study
identifies the optimum strategy that could assist the mining industry in handling both COVID-19 and
sustainabilityissues.
Findings –The study’s outcome reveals that a large group of workers, collapse of demand and
disruption, and suffered contractual workers are the top three factors that need to be considered
regarding COVID-19 and sustainability issues. Effective strategies for eco-innovation practices, an
emphasis on health and safety, and environmental awareness, education and training are the three
primarystrategies to be implemented for the greatestimpact.
Originality/value –This research studyis the first of its kind to coordinate both issues of COVID-19 and
sustainability. In this regard, this study sheds a timely lighton the precautions that need to be taken in
tacklingCOVID-19 and sustainability issues. Thisstudy’s outcome will enhance the managerial capability
in developingrobust and effective strategiesfor handling difficult situations.
Keywords Mining industry, COVID-19, Eco-innovation practice,Fuzzy-COPRAS,
Green recovery strategies
Paper type Research paper
1. Introduction
The novel coronavirus (COVID-19) outburst clearly impacted health care and other
industries, but an effect that is not as widely discussed is its impact in bringing about a
severe economic crisis (Shen et al.,2020;Alrahbi et al., 2020). COVID-19 has decelerated
the pace of global economic activities. With the introduction of partial or full lockdowns and
required quarantine policies, the movement of people has been restricted which has
resulted in economic stagnation.Under such an untoward situation, with no other option left,
many countries reduced or halted their production activities, leading to a formidable
economic recession (Altig et al., 2020) based on elevated levels of poverty and
unemployment. According to the World Bank, experts anticipate the global gross domestic
product (GDP) will fall by 2.1%. In developing countries, the GDP will fall by 2.5% and in
developed countries, the GDP will fall by 1.9% (Maliszewska et al.,2020).
India has been severely devastated by COVID-19; this nation’s GDP has been reduced by
4% (Chaudhary et al.,2020). The Indian economy is primarily backed by small and
medium-sized enterprises (SMEs). These SMEs suffered a loss of $4.5bn during the
Ramaganesh Marimuthu and
Bathrinath Sankaranarayanan
are both based at the
Department of Mechanical
Engineering, Kalasalingam
Academy of Research and
Education, Krishnankovil,
India.Syed Mithun Ali is
based at the Department of
Industrial and Production
Engineering, Bangladesh
University of Engineering
and Technology, Dhaka,
Bangladesh.
Koppiahraj Karuppiah is
based at the Department of
Mechanical Engineering,
Kalasalingam Academy of
Research and Education,
Krishnankoil, India.
Received 6 May 2021
Revised 22 May 2021
Accepted 26 May 2021
PAGE 428 jJOURNAL OF ASIA BUSINESS STUDIES jVOL. 16 NO. 3 2022, pp. 428-447, ©EmeraldPublishing Limited, ISSN 1558-7894 DOI 10.1108/JABS-05-2021-0179
lockdown (Gopalan and Misra, 2020;Chowdhury et al.,2020). The mi ning industry in India
plays a significant role in economic development and contributes around 2% of t he GDP. India
is the fourth-largest producer of minerals after China, Russia and the USA (Mari muthu et al.,
2021). Although the mining industry contributes greatly to t he nation’s economic development,
it is heavily criticized for its adverse environmental impact. During mining o perations, available
natural resources are exploited in an uncontrolled manner. Su ch kind of exploitation results in
ecosystem loss and ecological imbalances (Ali et al.,2021). Like other industries, Indi a’s
mining industry suffered during the COVID-19 pandemic. Because much of the mining
industry closed because of the pandemic situation, workers lost their jobs and fa ced heavy
financial challenges. The prolonged decrease in economic activi ties escalated the economic
crisis in addition to the existing human tragedy caused by COVID- 19. These conditions served
to impede the country’s advancement toward sustainable development goals (SDGs ). Hence,
it is essential to analyze the problems faced by the Indian mining industry during COVID-19
and to use that analysis to suggest a green recovery strategy for overcoming both e conomic
and environmental problems that act as hindrances in accomplishing th e nation’s SDGs.
A study by Laing (2020) that explores the economic effect of the COVID-19 on the mining
sector reveals that this industry has witnessed a drastic decrease in the price of minerals
and metals. In another study, Krzysztofik et al.(2020) evaluate the spatial and functional
aspects of the COVID-19 outbreak in Poland.They found that hard coal mining posed a key
issue from a financial and political perspective. Stephany et al. (2020) summarized the
impact of COVID-19 in the mining sector and noted the decrease in the cost of metals and
minerals. They outlined two potential scenarios for impacts associated with COVID-19.
Further, restrictions in the supply chain lead to higher metal prices and increases in metals’
inventory (Chowdhury et al., 2021). Hence, under such unprecedented situations,
organizations need to have a resilient and substantial supply chain network (Lopes de
Sousa Jabbour et al.,2020
). Also, industries must have appropriate inventory policies in
managing difficult situations (Shahed et al., 2021). In overcoming the difficulties caused by
COVID-19, financial assistance from the government is crucial (Karmaker et al.,2021). In
their study, Xiong et al. (2020) highlighted that during COVID-19, the mining industry was
psychologically disturbed. Based on stock market volatility, measurements of uncertainty
from newspapers and Twitter and measurements of subjective uncertainty, forecast
disagreements for GDP growth and model-based micro uncertainty, Altig et al.(2020)
argued that a drastic jump in economic uncertaintyhas occurred due to COVID-19.
Apart from the economic problems encountered by the mining industry during the COVID-
19 pandemic, the environmental problems caused by the mining industry have been
debated among researchers and policymakers for a long time. A typical mining process
involves the following steps: getting a license, mining the ore, making money from the
metals and as soon as the mineral resources are drained, walking away and preparing a
new mine. Such a mining process clearly has an adverse impact on the environment and
society (Carvalho, 2017). The products obtained from the mining industry, such as building
materials, coal, petroleum, silver and gold, are critical for humans but should not come at
the cost of exploiting nature. The environmental impact caused by the mining industry
affects the land, water and air. A study by Fugiel et al. (2017) insists that various hazardous
gases and particulates (CO, CO
2
,CH
4
,SO
x
and NO
x
) are generated during mining
activities. The uncontrolledexploration of the earth’s crust in search of minerals has affected
the groundwater level. Contamination of local water bodies from mining wastes affects a
region’s ecosystem (Sairinen et al.,2017). The environmental menacecaused by the mining
industry is more or less similar among developed and developing countries. However, swift
actions have been taken by the developed countries to lower adverse environmental
impacts (Zarghami and Fatourehchi, 2020). Conversely, however, in developing countries,
sufficient actions have not been taken to lower harmful mining activities. Despite their
adverse environmental impact, it is impossible to ban all mining activities as it serves as
such an important foundation for the nation; it provides an essential basis from which future
VOL. 16 NO. 3 2022 jJOURNALOF ASIA BUSINESS STUDIES jPAGE 429
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