water footprint for mining in south africa

www.waterfootprint.org

Water Footprint and Mining

South Africa Kate Laing

Pegasys Strategy & Development

30 November 2011

The Water Footprint Network

Mission: Promoting sustainable, equitable and efficient

water use through development of shared standards on

water footprint accounting and guidelines for the reduction

and offsetting of impacts of water footprints.

Network: bringing together expertise from academia,

businesses, civil society, governments and international

organisations.

Overview

1. Introduction to Water Footprint

2. How a Water Footprint is calculated?

3. The water impacts of mining

• What would a mining water footprint look like?

4. Who is interested in Water Footprint?

• Water Footprint & Policy

• Water Footprint & Corporates

• Water Footprint & Consumers

5. Water Footprint Response

The Beginning: Virtual Water

Economic perspective:

Water-abundant regions have an advantage

over water-scarce regions, but water is not

factored into the price of commodities.

Environmental-social perspective:

Consumers indirectly contribute to water

depletion and pollution elsewhere, without

covering the cost.

Political perspective:

Several nations become increasingly

dependent on external water resources. Water

becomes a geopolitical resource.

Globalization of Water

• The volume of fresh water used to produce the product,

summed over the various steps of the supply chain.

• This is the same concept as virtual water.

• However, a water footprint goes on to:

• Quantify the actual volume

• Consider of the type of water used

• Consider when and where the water is used.

The Water Footprint of a product

[Hoekstra & Chapagain, 2008]

[Aldaya & Hoekstra, 2009]

Type of water used

Green water footprint

► volume of rainwater evaporated or incorporated into product.

Blue water footprint

► volume of surface or groundwater evaporated,

incorporated into product or returned to another catchment or the sea.

Grey water footprint

► volume of polluted water.

[Hoekstra, 2008]

Direct water footprint Indirect water footprint

Green water footprint Green water footprint

Blue water footprint Blue water footprint

Grey water footprint Grey water footprint

consum

llutio

Non-consumptive water

use (return flow)

Water withdrawal

The traditional

statistics

on water use

Components of a Water Footprint

Water Footprint of the EU‟s Cotton

Consumption

[Hoekstra, 2008]

Million m3/yr

Mm3/yr

EU25's impact on blue water resources

Water footprint of EU‟s Cotton Consumption

Blue Water

Mm3/yr

Million m3/yr

Mm3/yr

EU25's impact on green water resources

Water footprint of EU‟s cotton consumption

Green Water

Dilution water footprint

Million m3/yr

Mm3/yr

EU25's impact on global water resources due to pollution

Water footprint of EU‟s cotton consumption

Grey Water

Water footprint:

Makes a link between consumption in one place and

impacts on water systems elsewhere.

Shrinking Aral Sea

Water footprint:

Makes a link between consumption in one place and

impacts on water systems elsewhere

[Photo: WWF]

Endangered Indus River Dolphin

Water Footprint vs Carbon Footprint

Water footprint

• measures freshwater

appropriation

• spatial and temporal

dimension

• actual, locally specific values

• always referring to full supply-

• focus on reducing own water

footprint (water use units are

not interchangeable)

Carbon footprint

• measures emission GH-

gasses

• no spatial / temporal

dimension

• global average values

• supply-chain included only in

„scope 3 carbon accounting‟

• many efforts focused on

offsetting (carbon emission

units are interchangeable)

WF vs Life Cycle Assessment

Water footprint

• measures freshwater

appropriation

• multi-dimensional (type of

water use, location, timing)

• actual water volumes, no

weighing.

• measures overall

environmental impact

• no spatial dimension

• weighing water volumes

based on impacts

How is a Water Footprint Calculated?

Type of water used

The green and blue water footprint in relation to the

water balance of a catchment area

Runoff from

catchment Ground- and surface water Soil and vegetation

Precipitation

production-related

evapotranspiration

Production-related

evapotranspiration

Abstraction

Return flow

Production-related

evapotranspiration

Water contained

in products

Water transfer to

other catchment

Runoff at

field level

Green water footprint Blue water footprint

Catchment area

Water contained

in products

[Hoekstra et al., 2011]

Green Water Footprint

• Volume of rainwater evaporated or incorporated into a

product.

• Particularly relevant for agricultural products.

• Typically measured as rain water crop evapotranspiration

• There are some industrial examples of direct use of

rainwater.

Blue Water Footprint

• Volume of surface or groundwater consumed in the production

of a good.

• Consumption refers to the volume of surface water:

• Evaporated or incorporated to a product

• Or abstracted and returned to another catchment/the sea

• In agricultural products this is typically irrigation.

• In industrial production this is BOTH surface and ground water

abstraction.

Grey Water Footprint

• Volume of polluted freshwater associated with the production

of a product over its full supply-chain.

• Calculated as the volume of water that is required to

assimilate pollutants based on ambient water quality

standards.

3. WFgrey > R

Pollution exceeding

the assimilative

capacity of the

environment

1. WFgrey < R Assimilative capacity

not fully used

2. WFgrey = R

Full assimilative

capacity of the river

Critical

L1 L2 L3

Level of

pollution

L (kg)

Grey water footprint in a catchment

Critical load is when assimilation

capacity is fully consumed

Lcrit = R (cmax - cnat)

Coherence in water footprint accounts

• WF product = sum of the water footprints of the process steps taken to

produce the product.

• WF consumer = sum of the water footprints of all products consumed by

the consumer.

• WF community = sum of the water footprints of its members.

• WF national consumption = sum of the water footprints of its inhabitants.

• WF business = sum of the water footprints of the final products that the

business produces.

• WF within a geographically delineated area = sum of the process water

footprints of all processes taking place in the area.

Unit of a water footprint

• WF of a product: water volume per product unit. Examples:

o water volume per unit of mass

o water volume per unit of money

o water volume per unit of energy (food products, fuels)

Green, blue, grey, so what?

Egyptian Wheat:

Total water: 930m3/ton

Green water: 0%

Blue water: 100%

Australian Wheat:

Total water: 1588m3/ton

Green water: 99%

Blue water: 1%

So what beer? SABMiller

SABMiller Water Futures 2009

Mining Impacts on Water

Type of water used

Water & Mining issues

Mining has an impact upon:

• Water quantity

• Water quality

These factors will both affect the water footprint of a mining

operation.

Water Quantity issues

Factors that would affect the water footprint of a mineral output:

• Climatic conditions (e.g. temperature, humidity > affect evaporation rates)

• Primary water source: surface water, ground water or saline water.

• Ore mineralogy and geochemistry (>affects processing)

• Tailings and overburden management (>affects water management).

• Type of commodity (e.g. uranium requires extensive dust suppression).

• The extent of reuse and recycling

• Mine site water management regime (e.g. allowable discharges; treatment)

• Surrounding communities‟ land uses, and/or industries.

• Project design and configuration (type of mining, beneficiation, closure,

• The initial moisture content of the ore and waste rock.

• Whether the mine is above or below the water table.

• Surrounding hydrogeological conditions (e.g. high permeability aquifers;

artesian groundwater depressuration issues).

Water Quality issues

Water quality impacts of mining operations:

• Acid Rock Drainage (ARD).

• Neutral mine drainage (NMD) or Saline Drainage (SD)

• Heavy metal contamination and leaching

• Processing chemicals pollution

• Erosion and sedimentation.

Mining & Water Risk

• Extractive companies undertake significant operations in the

location of the resource (extraction, treatment, & often

processing.)

• As such, operations only receive water from an individual

catchment or transfer scheme

• There is almost no scope to move operations once

investment has begun without significant financial costs

(water is expensive to move).

• Water risk is therefore bound to local context.

• Surplus water is as much a risk as scarcity for a mining

company.

Shared risk

Dimensions of Water Risk

Physical Risks Regulatory Risks Reputational Risks Company

High reliance on freshwater

Mines are locationally fixed

so continual adverse

conditions cannot be solved

by relocating

Disruptions of operations

due to extreme weather

events

Increasing competition with

other users might lead to

right curtailment or

revocation

Increasing cost for rights,

storage, waste treatment,

and discharge

Government may reject

licenses based on

stakeholder concern

Concerns of

stakeholders around

quality and quantity from

company operations can

cause distribution to

operations or increase

cost of doing business

Depletion of resource

may create negative

perceptions elsewhere in

the basin

Availability of freshwater

limited as a result of other

user requirements

Other basin users might

pollute water resource

Climate change might alter

hydrology of basin and user

Institutional weakness or

failure can affect water

quantity or quality

International basins at risk

if other riparian

state(s)have poor

regulations

Local companies favoured

over multi-nationals for

licensing and fees

Large corporates are

easy scapegoats for

basin wide water risk

issues around quality

and quantity even if they

are not the primary

contributing party

End users may chose

not to purchase product

from a particular basin if

there is high risk

This Water Footprint, not That

• Water footprint would be measured in m3/ton of product

• It would vary significantly, between and within ore types.

• It is influenced in large part by the quality of ores.

• Because of the importance of local conditions, the water

footprint of mining varies considerably between sites.

• Operations impact on a mining water footprint

• Mine closure has an impact on a mining water footprint.

Water Footprint & Mining

• Water Footprint expands the concept of fresh water consumption:

• Green water

• Grey water

• It helps to talk about “non consumption” (recycled water)

• It creates a shared standard and language for water use.

• Most mines understand their water balance – WF can contribute to

understanding where water is consumed in production and identify where

best to invest in water saving technology or process.

• The WF Assessment helps with understanding the sustainability of water

footprint within the context of the local water resources (impact).

• Mining companies may understand their current water use but may not be

able to plan for future water needs given:

• Expansion of activities

• Climate change.

Who is interested in WF?

Who is interested in Water Footprints?

1. Policy makers

2. Corporates and businesses

3. Consumers

Policy & Water Footprint

Water Footprint has insights for:

• Trade Policy

• Agricultural Policy

• Water Policy

Policy: Water Footprint & Food Security

Agricultural Water Footprint of Morocco 1 2 3

Policy: WF & Water Allocation

Example: Water Footprint of Biofuels 1 2 3

Business & Water Footprints

Businesses face water risk:

• Physical risk

• Reputational risk

• Regulatory risk

• Financial risk

There are opportunities for business

• Supply chain risk management

• Corporate image

Corporate social responsibility

• From operations to supply-chain thinking.

• Shifting focus from water withdrawals to consumptive water use.

• From securing the „right to abstract & emit‟ to assessing the full

range of economic, social and environmental impacts of water use

in space and time.

• From meeting emission standards to managing grey water

footprint.

Water footprint: What is new for business?

Example Corporate Water Footprint

SABMiller Water Footprint

Energy Fertiliser/ pesticide Crop Growth (rainfed/ irrigated)

Crop Cultivation

Transport Energy Crop Imports Direct Water Use

Crop Processing

Energy Transport Packaging Raw Materials Waste Direct Water Use

Brewing

Transport

Distribution

Disposal Recycling

Consumer

“Each of these countries are facing different water related

issues, are at different levels of economic development,

use land in different ways and are experiencing different

climatic challenges.” (SABMiller Water Futures)

SABMiller 5 R‟s

P(r)otect

Reduce, Reuse & Recycle

Redistribute

• Influence farmers in responsible water use

• Understand the watersheds where there are breweries &

bottling plants.

• Where appropriate, replenish water resources through

rainwater harvesting and groundwater recharge

• Employ new processes and change behaviour to

reduce water consumption within plants.

• Collect & re-use waste water within facilities where

appropriate.

• Investigate and employ new technologies to recycle.

• Provide local communities with clean water through

community investment programmes

• Treat waste water so it can be used for irrigation or

other purposes.

Consumers & Water Footprint

1 2 3 1 2 3

Consumers & Water Footprint

Protest at the proposed $4.8 billion

Conga gold mine (Peru, 25 November

Fears that the mine would hurt nearby

water supplies, the mine would cause

pollution and alter sources of

irrigation water.

Water & Mining South Africa

Source: Greenpeace, True Cost of Coal in South Africa, 2011

Water & Mining South Africa

Source: WWF-SA Coal and Water Futures, 2011

Water footprint sustainability

assessment &

Water footprint response

Water Footprint Response

Water footprint

reduction

Avoid the water

footprint

Water footprint

offsetting

Step 1 Step 2 Step 3

Avoid, Reduce & Offset

Avoid: do not undertake water-using activities if reasonable

alternatives are available.

Reduce: undertake what is reasonably possible to reduce the existing

water footprint.

Offset: compensate the residual water footprint by making a

reasonable investment (payments or in-kind contributions) in

establishing or supporting projects that aim at a sustainable,

equitable and efficient use of water in the catchment where the

residual water footprint is located.

Role of Technology

Preventing water use

redesign of process – e.g. dry sanitation, dry cleaning

Water saving technology

innovative devices in households and industries

water-saving irrigation techniques along the whole supply chain

(storage – distribution – application)

water reuse

Desalination

Pollution prevention

recycling chemicals and materials

wastewater treatment

Reporting

• Shared terminology & calculation standards

• Product transparency

– water footprint reporting / disclosure

– labelling of products

– certification of businesses

• Quantitative footprint reduction targets

– benchmarking

Investor Perspectives

Reduce water risk of investments:

• physical risk formed by water shortages or pollution.

• risk of damaged corporate image

• regulatory risk

• financial risk

There will be increased demand for accounting and substantiated

quantitative water footprint reduction targets from companies.

[Morrison et al., 2009; Pegram et al, 2009; Hoekstra et al., 2009]

Government Perspective

Water footprint analysis is becoming embedded in national water

policy making.

It promotes coherence between water and other governmental

policies: environmental, agricultural, energy, trade, foreign policy.

Future requirements for product transparency - annual water footprint

accounts and implementation of water footprint reduction measures.

e.g. through promoting a water label for water-intensive

products;

e.g. through water-certification of businesses.

Government Perspective

Level Means

User level

Local water use efficiency

Create incentives to the water user:

water pricing, promoting technology,

awareness raising

River basin level

Water allocation efficiency

Allocate water where its value

added is highest

Global level

Global water use efficiency

Virtual water trade from water-

abundant to water-scarce regions

Water use efficiency at different levels:

Key question: how to develop a coherent set of actions at different spatial

levels to solve local water problems?

www.waterfootprint.org

Thank You

Kate Laing

Pegasys Strategy & Development

Email: kate@pegasys.co.za

Twitter: @kate_laing

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