The mining sector, like other sectors of the economy, is under increasing pressure to adopt circular economy (CE) principles across its value chains and core operations. This paper offers a critical and conceptually grounded contribution to understanding how CE can support systemic transformation in one of the most resource-intensive and path-dependent sectors of the global economy. It examines the structural and institutional conditions that shape the adoption of CE in mining and identifies key tensions that constrain or enable transformative change. In parallel, the paper explores emerging pathways informed by technological innovation, shifts in production routines, and the rise of new circular business models. These insights are synthesised into a multi-level framework that captures the dynamic interactions between micro-, meso-, and macro-level processes shaping CE transitions. In addition to offering a diagnostic perspective, the framework outlines concrete action points for advancing systemic change.