01/2012

PERUMIN 2013

The Future of Water in the Mining Industry

AREQUIPA, PERU

2

01/2012

Global Water Situation

3

01/2012

We Live on a Salty Planet

4

01/2012

A Growing Population Needs More Water

From Allianz.com

5

01/2012

Global Water Withdrawal and Consumption

6

01/2012

Global Fresh Water Withdrawals

Agriculture 2,800 km3/yr

70%

Municipal & Domestic 400 km3/yr

10%

Industrial/Energy 800 km3/yr

20%

, 0, 0%

Total global withdrawal approx 4,000 km3/yr in 2010

Mining

7-9 km3/yr

0.2%

7

01/2012

Environmental Water Scarcity Index for 2030

NIC, 2012

8

01/2012

Effects of Climate Change

9

01/2012

Water Challenges, Causes and Risks (From CEO Water Mandate, 2012)

10

01/2012

Water For Mining

11

01/2012

Copper Demand Curve (World Copper Factbook, 2010)

12

01/2012

Copper Production (World Copper Factbook, 2010)

13

01/2012

Mining Industry Differentiators

Water is essential for most mining

Mining and processing often at a

massive scale, large water

requirements

Operations are relatively short lived,

water requirements are temporary

Remote global locations

Little or no infrastructure

Often must deal with stringent

regulatory requirements

Environmental sensitivity

Social issues and conflicts

14

01/2012

Major Drivers for Water in Mining

Mines being developed in water poor

places - investment in pipelines, wells,

and desalination plants.

Increased reliance on low grade ores -

more water is required for each tonne of

refined product.

Mining companies must treat wastewater

to higher standards – increased

regulation, need to recycle and

commitment to sustainable water use.

Water is a major environmental concern -

problems caused by acid rock drainage

and other impacts to water resources.

Mining companies trying to reduce their

water footprint

Physical Availability

Social License to

Operate

Legal Availability

Physical and legal water

availability does not

guarantee a sustainable

water supply solution!

15

01/2012

Future of Mine Water Resource Management

16

01/2012

Integrated Water Management for Mines

Integrated water

management for mining

Mine water needs

Mine water sources

Permitting, environmental,

social, legal constraints

Ecosystems

Other water users

17

01/2012

Integrated Water Management – Key Areas

ADMINISTRATIVE

Meet regulatory standards

Integrate water strategy into

corporate and business unit

strategies

Develop management structure

COMMUNITIES

Engage early with all stakeholders, including communities

Use water unsuitable for other industries, i.e., sea water

TECHNOLOGICAL/INNOVATION

Manage Water:

Establish water balance

Measurement instrumentation

Manage database

Audit results

Preventive water use:

Redesign process

Minimize water losses

Water-saving techniques

Protective management strategies/

measures and technical solutions:

Determine potential for AMD

Identify discharge points

Improvement of infrastructure to contain runoff

Monitoring information management

Tools are available to proactively

manage water

18

01/2012

Water Footprint, Carbon Footprint & Lifecycle Assessment

WATER FOOTPRINT

CARBON FOOTPRINT

LIFE CYCLE

ASSESSMENT

Measures freshwater

appropriation

Measures emission

GH-gases

Measures overall

environmental impact

Spatial and temporal

dimension

No spatial / temporal

dimension No spatial dimension

Actual, locally specific

values Global average values

Actual water volume,

no weighting

Weighting water volume

based on impacts

Reducing specific water

footprint (water use

units are not

interchangeable)

Many efforts focused

on offsetting (carbon

emission units are

interchangeable)

Water footprint, Carbon footprint and Life Cycle

Assessment are complementary

tools

19

01/2012

Water Disclosure is Becoming a Reality

20

01/2012

Future of Water Governance

Future water governance changes will be seen in four main

areas: technology, energy, water pricing and other users’ rights to

water

TECHNOLOGY ENERGY

New technologies are developed to meet stringent regulations

Conservation and efficient use

VALUE OF WATER RIGHTS TO WATER

Water supply and demand

Conflicts and priorities

Source: http://www.willmsshier.com/articles.asp?id=86

21

01/2012

Efficiency of Water Use for Mining

Corporate goals and commitment to efficient water use

Accurate water balance and measurements of water use

Process optimization to reduce waste water volumes

Improved tailings water management – thickened and dry stack

tailings

Water re-use

Zero liquid discharge

22

01/2012

Storage and Transport of Water

Catch and store surface water runoff – surface reservoirs, aquifer

storage and recovery (ASR)

Interbasin transfers

Improved water infrastructure - pipelines, pumping systems, water

tunnels

23

01/2012

Potential Groundwater Sources

Characterization of aquifers – water in storage and recharge

Use of groundwater with marginal quality - treatment

Permitting and environmental issues with potential groundwater sources –

can we use brackish water resources?

Aquifer storage and recovery (ASR) to optimize water storage

Injection for ASR

24

01/2012

Water Treatment and Re-use

Many proven standard water treatment technologies

Innovative technologies being developed using membranes and other

systems

Process optimization to increase water quality of mining effluents

Treatment of historical mining water quality issues

25

01/2012

Desalination Systems

Desalination plants

Intakes and outfalls

Pumping and piping

systems

Power sources

26

01/2012

Tailings and Water - Industry Trends

High density tailings using:

Thickeners

Filtration

Centrifuge

Chemical additives

Improved water management:

Upstream cutoff for valley impoundments

Separation of seepage and decant flows

Reduced beaching length (dry climate)

Reduced wet footprint (wet climate)

27

01/2012

Cost vs Benefit to Recover Tailings Water

Where is the best investment in water recovery from tailings for the least cost?

$0

$1

$2

$3

$4

$5 Typical Range

Water

Loss

Operating

Cost

Slurry Thickened Paste Cake

28

01/2012

Mining Impacts on Water

Environmental

Heavy metal

contamination and

leaching

Acid Mine Drainage

Processing chemical

pollution

Erosion and

sedimentation

Social

Depletion of surface and

groundwater supplies

Soil and water pollution

Conflict with other water-

related or water-intensive

industries (i.e., agriculture)

Water shortages and

ecosystem damage

Displacement of people/

communities

Water has been called “mining’s most common casualty” James Lyon, interview, Mineral Policy Center, Washington DC

29

01/2012

Mine

Integrated Water

Management

Sewage, effluent process water, potable and process plant

Tailings

Geochemistry

Hydrology

A Holistic View of Water

30

01/2012

Mine Water in Peru and Chile

31

01/2012

Water Availability in Peru & Chile

Balance (millones m3/aňo)

Macrozonas Ayer

1996

Hoy

2010

Maňana

2025

I a II -40 -928 -1.602

III a IV .397 -873 -1.2990

V a RM -1.393 -1.988 -2.844

VI a VII 16.452 15.173 12.688

VIII a X 189.204 186.763 164.517

XI x XII 526.801 526.005 525.708

32

01/2012

Water Challenges in Peru

Increasing glacial retreat rates

Only 22% of sewage water from cities receives some kind of treatment prior to discharge.

78% is discharged & lost

50% of rain water is lost

33

01/2012

Water Challenges in Chile

Chile´s Projected Water Demand for Mining in m3/s (2009 – 2020) – Cochilco, 2009

Chile´s Water Offer & Demand 2011 (DGA)

34

01/2012

The Gap Between Water Availability and Demand

A gap already exists in areas of Chile and Peru

It will get worse with time as demand increases and available water decreases

How are we going to overcome the problem for the mining industry?

Water Demand

Water Availability

Growing Gap

Gap

Time in Years 2000 2010

W a t e

r V

o l u

m e

1950

In Chile and Peru, desalination will

be an essential source of water as

other sources are not always

available. We need to find ways to

reduce costs and impacts of energy

production

35

01/2012

Seawater Desalination Using Renewable Energy

36

01/2012

Potential for Solar Power

Historical development of

global cumulative photo

voltaic power installed per

region

MW

37

01/2012

Potential for Wind Power

Cost Reduction of Wind Power Comparison of Energy Sources

38

01/2012

Seawater Desalination Using Renewable Energies

Why use renewable energy for desalination?

Desalination is energy-intensive

Provide energy availability in remote areas

Why use solar energy?

Solar energy abundant in many areas with critical water shortages

Solar powered desalination plants are technically feasible where other energy sources are not available

39

01/2012

The Future of Water for Mining - Issues and Solutions Issues

Water is essential for mining

Global water demand is increasing

Water shortages will be more common

Mining often conflicts with other users

Regulation will increase

Historic problems must be addressed

Many mines are not effective water users

Solutions

Consider water an asset to be managed

Deal with water as an integrated system

Proactively engage other water users

Implement technical innovations

Develop alternative water sources

Manage water footprint

PROCESS

TAILINGS

ENVIRONMENTAL

HYDRO-

TECHNICAL

GEOTECHNICAL

CIVIL

WATER

Holistic water management

takes a multidisciplinary

approach

40

01/2012