Integrating circular economy (CE) principles into mining practices offers a promising path toward reducing environmental harm while promoting sustainable resource management. This shift boosts the industry’s efficiency and profitability and aligns it with global sustainability goals. This paper delves into strategies for closing material loops, such as waste valorization, resource recovery from mine tailings, and water reuse in mining processes. Additionally, this study highlights innovative technologies and their potential to transform traditional linear practices into sustainable, circular systems. This paper emphasizes the importance of strong collaboration among industry stakeholders and policymakers, including mining companies, researchers, and local communities, for the implementation of CE principles. This paper also discusses the role of emerging digital tools, automation, and artificial intelligence in advancing circular practices and improving operational efficiency. By exploring the economic, environmental, and social benefits of the CE, this paper demonstrates how these practices can contribute to sustainable mining. It addresses key challenges, including technological, economic, and regulatory hurdles, and offers recommendations for overcoming them to pave the way for a more sustainable and resilient mining industry.