Circular Economy Models in Industry: Developing a Conceptual Framework

Abstract

One of the trends in sustainable economic development is the transition to circular business models, which aim to optimize goods and material flows by taking into account their cyclical nature at all production stages. Adapting circular business models to mining and mineral processing operations can serve as an impetus for mining companies to upgrade and move to a new level of technological sophistication. This article attempts to develop a conceptual framework for circular business models factoring in the nature of production chains in coal mining, power generation, and metal production to reduce production costs, expand the product range, improve sustainable development indicators, and deliver growth in company value. This article is based on desk studies that were aimed at analyzing the efficiency of circular models, organizing data on experience in rational resource use in the mining industry, and transforming basic circular models into adapted ones for the environment in which coal companies operate. This study developed a conceptual framework of options for the implementation and evaluation of circular business models using an interdisciplinary approach and taking into account the specific features of coal companies and the principle of a resource being valuable throughout its whole life cycle. The proposed conceptual framework of circular business models can be used by Russian coal companies to design corporate strategies and long-term development plans.