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QuickScan

The right time to mine?

Dutch business opportunities inwater and mining

INDEX p.

1. INTRODUCTION 1

1.1. Why this QuickScan? 1

1.2. Collaboration 2

1.3. QuickScan set-up 3

1.4. Contents 4

2. WATER AND MINING 5

2.1. Mining 5

2.2. Water in mining 6

2.2.1. Water scarcity and competition for water 7

2.2.2. Water diversion and flooding 7

2.2.3. Water use for mining and processing 8

2.2.4. Dewatering and mine water disposal 9

2.2.5. Acid Mine Drainage 9

2.2.6. Water for supporting infrastructure 9

3. OVERVIEW AND SYNTHESIS 11

3.1. Analysis 11

3.1.1. Water stress and mining globally 11

3.1.2. Global trends 12

3.1.3. Generalised SWOT 13

3.2. Main conclusions 13 APPENDIX I RESULTS PER COUNTRY

1. AUSTRALIA 2

1.1. Themes 2

1.2. Facts and figures 2

1.3. Key players 2

1.4. Analysis 3

2. CHILE 5

2.1. Themes 5


2.3. Key players 6

2.4. Analysis 6

3. CHINA 7

3.1. Themes 7


3.3. Key players 8

3.4. Analysis 8

4. COLOMBIA 10

4.1. Themes 10


4.3. Key players 10

5. INDONESIA 12

5.1. Themes 12


5.3. Key players 13

5.4. Analysis 13

6. MEXICO 15

6.1. Themes 15


6.3. Key players 16

6.4. Analysis 16

7. MOROCCO 17

7.1. Themes 17


7.3. Key players 17

7.4. Analysis 18

8. PERU 19

8.1. Themes 19


8.3. Key players 20

8.4. Analysis 20

9. POLAND 22

9.1. Themes 22


9.3. Key players 22

9.4. Analysis 23

10. ROMANIA 24

10.1. Themes 24


10.3. Key players 24

10.4. Analysis 25

11. RUSSIA 26

11.1. Themes 26


11.3. Key players 27

11.4. Analysis 27

12. SOUTH AFRICA 28

12.1. Themes 28


12.3. Key players 28 APPENDIX II GLOBAL EVENTS CALANDER

Witteveen+Bos, ZZBOR8000-14-311/15-d000.385 final version 02 dated 15 January 2015, The right time to mine? Dutch business opportunities in water and mining

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1. INTRODUCTION

1.1. Why this QuickScan?

The Netherlands enjoys international recognition as a nation that knows how to deal with water. Following from its exposed location and development into a densely populated delta area, the Netherlands has been forced, by nature as it were, to address both water safety and environmental issues. Water sanitation, purification and a high standard of living go hand in hand, and people agree the best drinking water in the world flows from the taps in Dutch households. This has lead to a highly valuable pool of technology and expertise which, combined with a historically entrepreneurial spirit, offers opportunities for application abroad. In short, the Netherlands has a particularly strong ‘water brand’. Water is a key issue in mining, playing at multiple levels and stages. Water issues in mining range from water scarcity and competition between stakeholders, to water excess and flooding risks, from water quality for large amounts of process water to river-basin wide problems of water pollution by mining, from stability of tailing dams to stability of abandoned mineshafts. This invokes the question if the Dutch water sector could generate business in mining. This QuickScan provides a ‘first glance’ at the cross-over between mining and water, whilst asking the question: Is it the right time to mine for the Dutch water sector? This question is the central theme of a workshop on Water and Mining, organised by the Netherlands Water Partnership (NWP) and Witteveen+Bos (as partner in the Smart Tailing Platform) on January 13th 2015 - this QuickScan is an input for the discussions of that workshop. Figure 1.1. Mine waters at Bor, Serbia

Photo: Dirk de Kramer


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1.2. Collaboration

This QuickScan has been jointly executed by NWP and Witteveen+Bos (as Smart Tailing Partner), through their joint interest in the themes of water and mining. It was executed and financed in the context of the Partners for Water Programme.

Netherlands Water Partnership

The Netherlands Water Partnership (NWP) is a comprehensive network that unites Dutch water expertise. The partnership, consisting of 200 members from private companies, government, knowledge institutes and NGOs, acts as a centre of information on water expertise, policy developments and market opportunities. But NWP is more than an information source; the organization also initiates, coordinates and executes projects for its members, such as trade missions, exhibitions and conferences. By putting our heads together as a network, we can achieve more in solving global water related challenges. A united voice is stronger than 200 individual voices. Moreover, by entering markets in clusters, offering expertise as a one-stop-shop, Dutch companies increase their world market share considerably. In the Netherlands as well as abroad, the NWP is the gateway to all you need to know about the Dutch Water Sector and its solutions to global water related challenges. Let’s work together! Over the last two years, issues on the cutting edge of water and mining popped up in several networking activities, e.g., Australia, South Africa, and Colombia. With this quick scan NWP aims to start a discussion with our partners in the water sector, explore future opportunities and jointly decide about the next step and strategy.

Smart Tailing Platform Since 2012, the Smart Tailing Platform brings together Dutch companies providing products and services that (may) find application in mining, to align and bundle their pre-competitive endeavours on the mining market. The Smart Tailing Platform aims to create and facilitate a business ecosystem in which all players, specialist and generalists, large and small, innovative and established, can find or create their own business niches, through strengthening relations, collaborations and exchange of information and ideas. Their joined forces bring together top-end expertise on remediation design, measuring and monitoring techniques and management. The focus of the Smart Tailing Platform lies at the sustainable, integrated, risk based, tailings management system. A Smart Tailings is a mine tailing site were optimal monitoring and sensing techniques (best fitted for that particular site) are applied together with a thoroughly elaborated technical design and secure safe and sustainable site operations and management.


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1.3. QuickScan set-up

Goal

The goals of the QuickScan are the following: - To provide basic insight in the opportunities and possibilities for the Dutch water sector

in mining. - To explore how the Dutch ‘water-brand’ can be a business card for Dutch companies

providing services and technology for the mining sector. - To provide input to a discussion on if and how to proceed for both sectors. Starting points

The following starting points have been used: - Source material limited to public, open sources (e.g. web query based). - Regionally limited to a (somewhat arbitrary) selection of countries based on:

⋅ Focus countries of NWP ⋅ The top six mining countries in terms of production value1

- Aimed at water-issues in mining: e.g. availability, environmental, safety and stability. On methods and references The QuickScan has been created based on web-queries followed by selective browsing on the topics of water and mining in the targeted countries. This somewhat ‘haphazard’ approach has produced the envisioned ‘first glance’, but by no means represents a full market research. Interested readers are encouraged to consult the large volume of publications on market opportunities and developments in water, mining or both, of which ample is freely accessible on the web. The followed approach has produced a varied collection of results, ranging from figures to quotes and from newspaper articles to tables of quotations. These have been assimilated into more or less general observations, which are difficult to provide with a reference. Interesting or insightful sections of text may have been quoted literally. In the fact and figures, the top produced commodities are sourced from the United States Geological Survey (USGS) Minerals: Commodity Statistics and Information. Other information was obtained from various websites and online available documents. Amongst others: - Infomine.com (general) - Wikipedia.org (general) - USGS Minerals: Commodity Statistics and Information (all countries) - The Future of Mining: Megatrends and Challenges (CSIRO Futures, Jun 2014) - Australia - Sustainable mining - Australian Trade Commission (http://www.austrade.gov.au) - Aussie Mine 2013: Unloved ... survival of the fittest (PWC, Nov 2013) - The Future of Mining in Chile (CSIRO Futures, 2014) - Chile: Country mining guide (KPMG Global Mining Institute, 2014) - Possibilities in and around Chilean mining, A Market Presentation (Margo Verhagen

(NL Embassy), May 2004) - Going for gold: China as a global mining player (KPMG, 2006) - China’s Mining Sector (PWC, November 2012) - China Mineral and Mining Sector Investment and Business Guide (International

Business Publications, USA, 2012)

1 The International Council on Mining and Metals (ICMM), October 2012: In brief: The role of mining in

national economies


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- Water Issues Associated with mining in Developing Countries (International Mining for Development Centre, Aug 2012)

- Mining and Development in Indonesia: An Overview of the Regulatory Framework (International Mining for Development Centre, Mar 2013).

- mineIndonesia 2013: 11th annual review of trends in the Indonesian mining industry (PWC, May 2013)

- Mining in Morocco - Ten things to know (Norton Rose Fulbright (June 2013)) - Peru: Country mining guide (KPMG Mining, 2013) - Peru’s mining & metals investment guide 2014/2015 (EY Peru) - 2013 Mining Industry - Doing business in Peru (PWC, 2012) - MVO Rusland: mijnbouw en delfstoffen (Rijksdienst voor Ondernemend Nederland,

RVO.nl) - Metals and Mining in Russia and the CIS (PWC, 2011) - Russian Mining Industry - Trends, Drivers and Business Opportunities (Nordic

Industries Development, Feb 2013) - SA Mine: Review of trends in the South African mining industry (PWC, Nov 2011) - Water treatment in South Africa (MIT, http://12.000.scripts.mit.edu/mission2017/) - Emerging Issues Paper: Mine Water Pollution (Ministry of Environment & Tourism,

Republic of South Africa, 2008) - Impacts of mining on water resources in South Africa: A review (Ochieng et al.,

Scientific Research and Essays Vol. 5(22), pp. 3351-3357, 18 November, 2010)

1.4. Contents

After this introduction, a background chapter shortly points out some key issues in the cross-over between water and mining (chapter 2). Chapter 3 provides a synthesis of the work, presenting an analysis and treating the main conclusion of the QuickScan. The countries which have been investigated are laid out in appendix I. Finally, appendix II provides a global events calendar relating to this subject for your information. Figure 1.2. Open pit mine, China



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2. WATER AND MINING

2.1. Mining

Mining is the collection of processes that converts a commodity in the earth from the local geology, through a series of processes, into a raw material. The steps are summarized below (figure 2.1). The figure displays the general components of mining, using copper as a model (please note that the exact schedule will vary depending on the commodity). The scales of the elements and arrows are an indicative representation of the volume’s involved. Figure 2.1. Simplified mining scheme for copper

Ore body

This is the source material of the commodity, containing the valuable element(s). Ore bodies are formed through various geological processes, resulting in different commodities which can be found in their respective geological environments. Overburden The overburden is the material that covers the ore body, causing it to be below the surface of the earth. In case of open pit mining (mining on the surface), overburden will be removed. Subsurface mines will tunnel underneath it into the ore body. Waste rock

The waste rock is the material that is mined (i.e. moved from its original position) but deemed unfit for further processing. It may just have been moved on order to reach the underlying valuable deposits, or because its value content is too low. The waste rock is commonly disposed of near the mine site in waste rock dumps). Benefaction

The excavated ore will consist of fragmented rock material, still holding the valuables. Depending on the commodity and deposit, this value may be highly dispersed and diluted (e.g. containing 0,1 % actual commodity, leaving 999 kg of unwanted mass for every 1 kg of mined ore). Benefaction is the process separating and concentrating the valuable mass from the unwanted parts. Typical benefaction processes are crushing, milling, froth-flotation (figure 2.2), washing, and sieving.


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Figure 2.2. Flotation unit


Tailings

The rejected mass at the tail-end of the process (i.e. after benefaction) is called tailings. Tailings are disposed in the vicinity of the mine in e.g. tailings ponds or tailings impoundments behind tailing dams (often constructed from the coarser fraction of the tailings). Processing

For metals, the concentrate will be treated in a series of (in the case of copper) metallurgical processes. Processes vary per commodity and deposit (e.g. hydro- or pyrometallurgical). The processes purify the concentrate in various steps to a final raw material, such as copper ingots of almost perfect purity. The metallurgical processes may generate waste streams (e.g. smelter slag) that are commonly also stored on site or in near proximity of the processing plant. Diversity

Mining is a far from homogeneous industry: the range of commodities is very wide, from bulk energy sources (e.g. coal) to rare earth metals (e.g. cobalt). The commodities can be mined and extracted in a variety of ways, such as bulk excavation and heap leaching, Artisanal Scale Mining (ASM), and sieving, through surface or underground mining. Mining of these resources takes place in almost every environment imaginable, from frozen tundra’s to offshore dredging, from desert mountain high plains to tropical lowlands. Combined with location specific circumstances and challenges, it is fair to say that every mining operation is unique (at least to a certain degree). Such an environment may favour specialists and innovators, but business in mining is faced with the difficulty of finding the right contacts for their solutions in the midst of all this diversity.

2.2. Water in mining

Water can play a significant role in mining: - As a resource and part of the processes of mining - As influencing the feasibility of a mining operation


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- As being affected by mining - As supporting the economic activities around the mining site The importance of the various water issues faced by mining differs with geology, climate zone, stage of the mining life cycle and many other variables. The most prominent water issues in mining are briefly presented in the sections below.

2.2.1. Water scarcity and competition for water Mines can consume large quantities of water. The volume of water used is proportional to the volume of material mined, the ratios varying per commodity. Generally however, larger mines evidently will use more water, which quickly turns into a limiting factor in arid environments. Using large quantities of water, or rendering it unusable to other stakeholders (e.g. downstream nature or other users), has lead to conflicts between economic, social and ecological values. Following such conflicts and facing increasingly stringent regulations, mines that lack access to sufficient water are considered a risk to investors.

2.2.2. Water diversion and flooding

Mine sites are primarily determined by the presence of a subsurface ore body. In order to reach and exploit it, the surface of the earth may (have to be) altered and/or managed. This can result for example in the diversion of rivers or the filling up of valleys with waste rock and tailings, thus creating an impact on the natural functioning of the water system. In an extreme example, the disposal of tailings materials in rivers can completely alter the sediment dynamics. The presence of rivers and other water bodies near mining sites also creates a safety risk for the mine, such as flooding (see figures 2.3 and 2.4). Figure 2.3. Flooded Kolubara coal mine in Serbia

Source: www.dutchwatersector.com


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Figure 2.4. Diavik diamond mine, Canada

Source: www.seatlediamonds.com

2.2.3. Water use for mining and processing

Many of the processes in mining involve the use of water. Mines in dry areas may suffer dust formation, which can be suppressed by spraying water. Benefaction methods such as flotation and coal washing use vast quantities of water to separate the unwanted fraction of the excavated materials. In addition, water is used as transport medium in the form of the carrying matrix in slurries or solutions, enabling efficient and controlled transport over considerable distances. Using water in processing requires technology and infrastructure for its sourcing, the processing itself, its recovery or recycling and its disposal. Figure 2.5. Transporting pipeline (left) and stirring tank (right) for phosphate-rock

slurry at phosphate processing plant, Morocco

Photos: Dirk de Kramer


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2.2.4. Dewatering and mine water disposal

Historically the most recognisable water issue for mining is the flooding of mines by groundwater. Before the steam engine, many deposits were kept out of reach of miners by the groundwater table. Dewatering today remains one of the main operational expenditures for mines, with local water tables lowered to up to hundreds of meters around open pit as well as subsurface mines. The lowering of the groundwater table(s) at and around a mining site may significantly alter the local geohydrological situation, potentially giving rise to conflicts over water rights with other stakeholders. Once pumped out of a mine, the water may have an extreme composition, influenced by the geochemical characteristics of the deposit being mined. Acid Mine Drainage (see below), salinity and even temperature may provide environmental problems for sensitive objects downstream of the discharge point of the mine water.

2.2.5. Acid Mine Drainage Although not occurring at every mine site, Acid Mine Drainage (AMD) is somewhat of a ‘poster child’ of mining and water problems. It is primarily an environmental problem, which stands out for its extreme phenomena and astonishing persistence (see figure 2.6). AMD is the result of oxidation of sulphide minerals present in or associated with the mined commodity or its host rock [e.g. pyrite (FeS2)]. Upon exposure to water and oxygen these otherwise buried and ‘sealed’ sulphides will react to form sulphuric acid. The acidification will, depending on the innate buffering capacity of its surroundings, initiate a host of chemical and biological reactions that may result in the run-off or drainage of waters with extreme chemical characteristics, such as drainage waters with high acidity (pH<2) and salinity, and high concentrations of, for instance, dissolved heavy metals. The drainage can be generated when water is in contact with the excavation face (e.g., open pit faces or tunnels), its waste rock dumps and its tailing storage facilities. Whereas this process of oxidation occurs naturally at geological rates, the mining activities dramatically increase the reactive surface of the materials through blasting, digging, breaking, crushing, milling, etc., thus increasing the reaction rates. Given the large volumes of materials involved, Acid Mine Drainage can potentially last for millennia; for instance with Bronze Age mining sites still generating AMD, affecting the character of entire rivers and catchments.

2.2.6. Water for supporting infrastructure

Mines may employ considerable numbers of workers, sometimes at locations that have no prior supporting infrastructure, e.g. drinking water supply or sewage treatment facilities (see figure 2.7). For that reason it is not uncommon for remote mining sites to have their own working camps. Through time these worker camps often evolve into mining towns. The associated growth and development gives rise to the ‘common issues’ (i.e. not necessarily connected to mining per se) around water use, such as exploration, development of wells, purification, distribution networks, development of sewage system, water treatment facilities, etc., as well as the associated problems and challenges, such as social (e.g. water rights) and environmental impacts. Given the sometimes extreme conditions (e.g. aridity, remoteness, growth rate, etc.) water for supporting infrastructure may provide interesting business opportunities for specialist companies, albeit primarily an issue for remote mines.


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Figure 2.6. Acid Mine Drainage originating from tailings dam, Serbia


Figure 2.7. Water purification at a phosphate processing plant in Morocco



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3. OVERVIEW AND SYNTHESIS

The large volume of publications on water and mining makes it hard to concisely answer the question: Is it the right time to mine? Even though the topics and technical challenges can be comparable for various countries and commodities (e.g. the problem of Acid Mine Drainage), the political situation, language barrier or investment climate may completely change an opportunity when comparing between countries. And even then, a decision to invest or enter a market depends on much more than opportunity alone. The question also begs a question in return: the right time for whom? Some companies may already have access to a country through a sales network, which would allow them to broaden their portfolio. Others may choose to target a specific mine with a specific problem at a specific time (e.g. flooded mines). In that sense the question is free for any entrepreneur to answer in their own way. Drawing from the finding listed per country (presented in the appendix), this chapter provides a synthesis and some main conclusions.

3.1. Analysis

3.1.1. Water stress and mining globally

Water scarcity is a topic in mining, with potential for water becoming a limiting factor in production. As evidenced by figure 3.1, this is a theme that plays a role in the mining industries of Australia, China, Morocco, South Africa, Mexico, Chile and Peru. Figure 3.1. Baseline water stress (top) and current and future mines (bottom)

Source: World Resources Institute, 2013, AQUEDUCT GLOBAL MAPS 2.0

Source: World Resources Institute, 2013, AQUEDUCT GLOBAL MAPS 2.0


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3.1.2. Global trends

A set of developments emerges from the materials reviewed, that does provide food for thought. (After “The Future of Mining: Megatrends and Challenges”, CSIRO Futures) The Asian Century - Asia is becoming the economic hotspot - Economic development is driving demand for minerals and metals (figure 3.2) - Asia's influence on supply is growing Figure 3.2. World copper consumption, total, USA, EU-15 and three Asian countries

Source: MSc thesis S. Carelsen, Influence of capillary bridges on weathered tailings material, University of Twente

The Innovation Imperative

- Production efficiency needs to rise - Energy costs are rising - Water costs are rising (scarcity) - Ore grades are declining (figure 3.3) - Skilled labour is often hard to come by


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Figure 3.3. Decreasing ore grades for copper

Source: www.oracleminingcorp.com

The Era of Accountability

In the coming decades the operations of mining companies will need to be planned to meet both rising societal expectations as well as greater regulation relating to environmental and social accountability. The Rise of Recycling With declining ore grades and rising mining production costs, the mine of the future may be increasingly concerned with materials that lie above, rather than below, the earth’s surface.

3.1.3. Generalised SWOT For country an analysis has been performed to investigate the strengths, weaknesses, opportunities and threats for Dutch business opportunities for water and mining. The analysis is based on the findings of the QuickScan, as well as common knowledge. Table 3.1 presents the generalised SWOT points for the countries combined. Table 3.1. SWOT analysis for Dutch business opportunities for water in mining

Strengths Weaknesses

- Water as a ‘brand’ for Dutch companies

- Established and recognised in water and

environmental sectors

- Competition in a conservative market,

- Netherlands not recognised as ‘mining county’

Opportunities Threats

- Innovations in water en energy efficiency

- Increasing awareness on sustainability

- Presence of big global mining players with

established contacts (hard to penetrate)

- Diversity reduces overview in a global playing field

3.2. Main conclusions

The QuickScan leads to the following main conclusions: 1. Water is a key (and growing) concern to the mining industry at various levels, driven by:

⋅ Sharply rising demand for raw materials (during periods of world economic growth). ⋅ Decreasing ore grades of remaining deposits (requiring larger volumes to be

processed). ⋅ Increasing scarcity of water (through amongst others competition, climate change).


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⋅ Tightening of rules and regulations. ⋅ Increasing awareness on Corporate Social Responsibility and investor scrutiny.

2. The mining industry as a whole is a large investor in water related issues, representing

a large market which is characterised by: ⋅ A generally conservative attitude with emphasis on reduction of down-time. ⋅ A large body of established, globally operating engineering and service companies

specialised in and covering the essentials of mining. 3. The mining sector seeks solutions for challenges in both water and energy efficiency,

particularly pertaining to: ⋅ Availability and recycling of water. ⋅ Salt water use, treatment and brine disposal.

4. Main opportunities for Dutch business lie in: ⋅ Development of a specialist niche in business. ⋅ Providing and marketing solutions instead of products. ⋅ Innovations aimed at reducing costs and expanding the envelope of what is

currently feasible. ⋅ Collaboration with local partners. ⋅ Integral solutions with respect to availability of water in relation to functions of

water, e.g., a source for drinking water, industry and nature. Figure 3.4. Installing of a geotextile cover with embedded sensors

Photo courtesy of TenCate Geosynthetics

Witteveen+Bos, appendix I to report ZZBOR8000-14-311/15-d000.385 dated 15 January 2015

APPENDIX I RESULTS PER COUNTRY


1. AUSTRALIA

1.1. Themes

Australia is a dry continent with competition for scarce water resources. Water is therefore a key business risk for top companies. From a broad Australian perspective, drought, over-allocation, inefficient water supply (loss driven) and climate change has resulted in the Australian government developing a 10-year A$13bn plan to address these critical issues. Mining companies require adequate water of appropriate quality to operate since water is used across the business from exploration to mining, processing, smelting and refining. This poses many challenges to mining companies in Australia, e.g., water treatment, protecting ground and surface water, tailings and brine management, evaporation enhancement and minimisation, power-efficient desalination plants, linking power and water efficiencies to reduce greenhouse gas footprint, economic modelling of value/cost of water management.

Mining operations face a variety of water-resource issues ranging from insufficient water availability for

processing to excessive mine dewatering. These issues also change as a mine operation proceeds

through its development, commonly starting with a water deficiency and moving into surplus as deeper

pits require more dewatering. Operating mines have to contend with three main issues: water supply,

wastewater disposal and contamination of local water resources. In contrast, post-closure issues are

related to aquifer recovery or re-establishment of groundwater equilibrium, isolation of waste products and

the development of pit lakes in mine voids and associated long-term impacts.

[Mine void water resource issues in Western, Water and Rivers Commission report HG 9 (2003)]

1.2. Facts and figures

- Australia ranks as number 1 mining country in terms of production value - The Australian mining industry is mainly dominated by large multinationals. - Mining contributed 7.2 - 9.8 % of Australia’s GDP (2005-2010). - The mining industry accounted for 55 % of the total goods exported in 2010-2011. - The resources sector represents almost 20 % of the Australian Stock Exchange (ASX)

with almost 1/3 of all companies listed. - Top produced commodities [tonnes (year), ranking]:

⋅ Iron ore [530 Mt (2013), 2nd] ⋅ Bauxite [77 Mt (2013), 1st) ⋅ Gold [255 t (2013), 2nd] ⋅ Lead [690 kt (2013), 2nd] ⋅ Zinc [1.4 Mt (2013), 2nd] ⋅ Uranium [7.009 kt (2012), 3rd] ⋅ Coal [431 Mt (2012), 4th] ⋅ Copper [990 kT (2013), 4th] ⋅ Silver [1.7 kt (2013), 4th]

1.3. Key players

Sector Name

Government South Wales:

- New South Wales Department of Mineral Resources

- The School of Mines - University of New South Wales


Sector Name

Northern Territory:

- Northern Territory Department of Mines and Energy

Queensland:

- Natural Resources and Mines - Queensland

- EGRU (Economic Geology Research Unit)

- Energex

- ERGON Energy

- Julius Kruttschnitt Mineral Research Centre

- Ports Corporation of Queensland

- Queensland Competition Authority

- Queensland Department of Main Roads

- Queensland Department of Natural Resources

- Queensland Environmental Protection Agency

- Queensland Transport

- QLD Office of State Revenue

- The Queensland Department of State Development

South Australia:

- Mines and Energy - South Australia

Tasmania:

- Mineral Resources Tasmania

- TEMA - Tasmanian Explorers & Miners Association

Victoria:

- Department of Natural Resources and Environment (DNRE)

- Energy and Minerals Victoria

- Minerals and Petroleum Victoria

- Victorian Energy Industry

Western Australia:

- Department of Minerals and Energy - Western Australia

- Department of Resources Development - Western Australia

- Western Australian School of Mines)

Private (amongst others) BHP Billiton

Newcrest

Rio Tinto

Alcoa

Chalco

Shenua (Chinese)

Alcan

Xstrata (Glencore)

NGO’s/ Foundations Minerals Council of Australia

Association of Mining and Exploration Companies (AMEC)

Australian Institute of Mining and Metallurgy (AIMM)

International Mining for Development Centre (IM4DC)

1.4. Analysis

Opportunities can be found in: - Water scarcity:

⋅ From a broad Australian perspective, drought, over-allocation, inefficient water supply (loss driven) and climate change has resulted in the Australian government developing a 10-year A$13bn plan to address these critical issues

- Flooding (El Niño) - Water treatment


- Protecting ground and surface water - Tailing and brine management - Evaporation enhancement and minimisation - Linking power and water efficiencies to reduce greenhouse gas footprint - Economic modelling of value/cost of water management - Water-Energy interaction - High energy for pumping, high consumption by desalination

plants - Increasing scrutiny (increase of regulators, communities, NGO's, investors) = more

work Table 1.1. SWOT analysis for Dutch business opportunities for water in mining in

Australia


- Both water scarcity and water excess issues

- Strong presence of established national and

international mining service providers and

consultancies.


- Many water-related issues

- Focus on sustainability issues in mining

- Australia is assumed to be leading in environmental

management regarding mining.


2. CHILE

2.1. Themes

In general: water management, as operations are located in dry to very dry areas. Competition between the various sectors' water demands (mining vs. agriculture) has forced the mining industry to invest in desalination plants and consider water purification, recycling and use of saline water. For example: Lithium is mined from brine, which is pumped (use of groundwater) into evaporation ponds in one of the most arid regions of the country. This creates competition for water with traditional communities and ecological needs, and drives costly solutions.

Mining and logging companies 'leaving all of Chile without water'

Chile's government told to stop allowing firms to exhaust water sources with little regard for local people

More than 100 environmental, social and indigenous organisations protested in the Chilean capital, Santiago,

this week to demand that the state regain control of the management of water, which was privatised by the

then dictatorship in 1981.More than 6,000 people took part in the peaceful ‘great carnival march for the

recovery and defence of ‘water’ on Monday, according to the organisers, one of whom was former student

leader Camila Vallejo, who plans to run for parliament as a Communist party candidate.

The demonstrators delivered a letter to President Sebastián Piñera, complaining that the water shortages

affecting local communities were due not only to persistent drought but to structural problems in the

policies governing the exploitation of natural resources.

‘We have discovered that there is water in Chile, but that the wall that separates it from us is called 'profit'

and was built by the [1981] water code, the constitution, international agreements like the binational mining

treaty [with Argentina] and, fundamentally, the imposition of a culture where it is seen as normal for the

water that falls from the sky to have owners,’ the letter says. This wall is drying up our basins, it is

devastating the water cycles that have sustained our valleys for centuries, it is sowing death in our

territories and it must be torn down now,’ it adds.

The mining industry, which uses significant quantities of water, is one of the main pillars of the Chilean

economy, with copper exports accounting for one-third of government revenue.

[source: Guardian, Wednesday 24 April 2013]


- Mining production value ranking: #4 - A third of the world’s copper supply comes from Chilean mines - For Chile, mining is 20 % of GDP and represents 60 % of the country’s exports - Top produced commodities [per annum, ranking]

⋅ Metals: - Copper [5.7 Mt (2013), 1st] - Molybdenum [36.5 kt, 3rd] - Gold [55 t (2013), 14th] - Silver [1.2 kt (2013), 7th]

⋅ Industry minerals: - Lithium [13.5 kt (2013), 1st] - Arsenic [10 kt (2013), 2nd] - Iodine [1.8 kt (2013), 1st] - Rhenium [27 t (2013), 1st]


2.3. Key players

2.4. Analysis

Opportunities can be found in: - Desalination comes with high energy consumption. Energy is mainly generated from

hydropower (which cost water itself), hence opportunities lie with development of new energy sources and cost-efficient desalination.

- Direct use of seawater in benefit process: ⋅ Need of necessary infrastructure to resist the salinity ⋅ Pumping infrastructure, high cost of investment and operation ⋅ Equipment specialization (economic feasibility) ⋅ Benefit processes modification ⋅ Depends on mineral characteristics. At old mine sites, it’s necessary to assess

technical and economic feasibility - Desalinated water pumping:

⋅ Transport over long distances ⋅ Transport to high altitudes above the sea level ⋅ Transportation demands high energy consumption ⋅ Environmental problems in the discharge of salt

Table 2.1. SWOT analysis for Dutch business opportunities for water in mining in

Chile


- Mining is mayor part of Chilean economy, with

sustained growth projected

- Water is a key theme for mining in Chile

- Language barrier

- Established mining sector with strong competitors


- Clear need for specialist equipment and technologies

related to water for future growth

- Cross over between energy and (salt) water

- Interest in investing fluctuates strongly with demand

and the world economy

Sector Name

Government Codelco (state-owned mining company)

The environmental authority (either CONAMA or COREMA)

National Water Authority

Ministry of Agriculture

Private (amongst others) Antofagasta Plc

Freeport-McMoRan Copper & Gold Inc.

Anglo American Plc

BHP Billiton Plc

Consejo Minero (Mining Council)

NGO’s/ Foundations -


3. CHINA

3.1. Themes

For both material and energy, the demand in China is virtually limitless. Health and safety is a general key concern for Chinese mining operations. Two main water and mining related themes are: - Water scarcity:

⋅ Mining of coal and coal-fired powerplants require large amount of water. This may threaten farms and communities in water-stressed regions. Expected to be one of the constraints on China's future growth.

- Water pollution by spills and discharge: ⋅ As some operations grow uncontrollably/unregulated waterways and national parks

are endangered. ⋅ Good water management can be part of the overall safety of (underground) mining.

China must manage the conflict between coal and water

New coal-fired power plants in water-stressed regions could threaten water security for China's farms and

communities

The China, already the world's largest coal consumer, wants to significantly increase its coal electricity

generating capacity in order to expand its economy. More than half of the proposed plants will depend on

water resources that are under high or extremely high stress.

In July 2012, China proposed building 363 new coal-fired power plants. These plants would have a

combined generating capacity exceeding 557 gigawatts, an almost 75 % increase on current capacity.

Researchers at the World Resources Institute recently overlaid the locations of those proposed coal plants

on its Aqueduct water stress maps for China. Of the proposed plants, 23 % sit in areas where 40 % to 80 %

of available water resources are already in demand from other users – areas known as facing ‘high water

stress’. And 28 % would be built in regions where other users compete for more than 80 % of existing water

supplies – areas deemed to be facing ‘extremely high water stress’. New plants could potentially threaten

water security for China's farms, the country's largest water user, as well as other industries and

communities.

Coal power plants and their supporting industries are especially dependent on water, which makes this

finding particularly concerning. Mines use water to extract, wash, and process coal. Power plants need

water to create steam and cool generating systems. If China's plans come to fruition, coal mining, coal-to-

chemical production, and power generation could withdraw as much as 10bn cubic meters of water annually

by 2015, according to a recent Greenpeace China report. That's more than one-quarter of the water available

for withdrawal every year from the Yellow River.

[source: Guardian, Monday 9 September 2013]


- Mining production value ranking: #2 - Top produced commodities [per annum, ranking]:

⋅ Coal [3,650 Mt (2012), 1st] ⋅ Iron ore [1,320 Mt (2013), 1st] ⋅ Bauxite [47 Mt (2013), 2nd] ⋅ Copper [1.65 Mt (2013), 2nd] ⋅ Gold [420 t (2013), 1st] ⋅ Silver [4 kt (2013), 2nd]


⋅ Molybdenum [110 kt / 1st] ⋅ Rare Earths [100 kt (2013), 1st] ⋅ Lead [3 Mt (2013), 1st] ⋅ Zinc [5 Mt (2013), 1st] ⋅ Phosphate rock [97 Mt, 1st]

- Mining industry is state-owned - Highly protected/regulated market - Very poor safety record of mines

3.3. Key players

3.4. Analysis

Foreign investment in China’s mining industry varies by subsector with only certain areas being encouraged. Encouraged are: - Prospecting, exploitation and utilisation of coal-bed gas - Prospecting, exploitation and benefaction of iron and manganese ores - Development and application of new technologies for improving the utilization of tailings

and the comprehensive utilization of recovery technology of the mine ecology - Prospecting and exploitation of unconventional natural gas resources such as shale

gas and submarine natural gas hydrate Sectors in which foreign investment is restricted: - Exploring and mining of special and scarce coals exploration - Exploring and mining of barite - Exploring and mining of precious metals (gold, silver, platinum families) and precious

non-metals such as diamond - Exploring and cradling of phosphorite - Inorganic salts production with high resource consumption and serious environmental

pollution using outdated technologies Sectors in which foreign investment is prohibited: - Exploring and mining of tungsten, molybdenum, tin, antimony, fluorite - Exploring, mining and dressing of radioactive mineral products - Exploring, mining and dressing of rare earth meta Opportunities can be found in: - Collaborations with local consultants who are developing a portfolio on environmental

and water themes (business to business) - Water efficiency solutions - Salt water technologies - Developments around environmental awareness at global level (e.g. manufacturers

increasing sustainability demands)

Sector Name

Government Ministry of mines and energy

Private Various strong private and semi- private mine owners and operators



Table 3.1. SWOT analysis for Dutch business opportunities for water in mining in China


- Current environmental situation around mining

provides plenty of work to be done

- Water is a key theme for China

- Business environment is very hard to penetrate

- Historically, the industry has been fragmented, with

many companies operating in the same mining

area

- Clients are mainly hardware focussed

- China’s strong ‘do it ourselves’ mentality creates a

barrier to engage in business with foreigners

- Strong differences per province

- Environmental legislation is underdeveloped and

enforcement is not guaranteed

- Language barrier


- Environmental legislation is on the rise as a theme

in China

- Consolidation has been encouraged in an effort to

increase efficiency and to improve safety and

environmental performance

- The reduction of energy dependence on fossil fuels

could be a key challenge for the mining sector. China

may push the use of non-fossil fuels to 15 % of the

country’s total energy use by 2020. The 2015 target

for non-fossil fuel is 11.4 %.

- China’s workforce in academia is growing very

strong, reducing the competitive advantage at the

level of technology.

- American consultancies increasingly interested in

doing business in China


4. COLOMBIA

4.1. Themes

Most mines operate in regions with extreme seasonal variation in temperature and rainfall, facing difficult water management challenges. Major mining projects are in areas with high susceptibility to desertification, where mining companies struggles with increasing water scarcity and decreasing process water quality. On the other hand, in high mountain areas, due to high rainfall patterns, water must be managed to avoid flooding of operations that could lead to water contamination and potential health and safety issues.

Coal mines in Colombia are based in areas with severe water shortages. The mining activities of these

companies exercise a major impact on the access to safe and affordable water for local settlements. The

impacts are related to decreasing water availability and water pollution (including ground water sources).

The excessive use of mercury by gold mining companies has deteriorated the water sources quality. The

industry, together with the government approved 2 years ago the ‘Mercury Law’, which establishes that in

period of 5 years all companies have to eliminate the use of mercury in their mining processes.


- The mining industry has a contribution of 2.3 % of total GDP. Exportation of minerals

and metals accounts about 22.9 % of total exported goods. - Most exploitation is done by large multinationals. However, small and medium mining

operators, with low levels of productivity, are also active. - Important trends in the industry are: implementation of best practices that can

guarantee good environmental performance and developing projects related to alternative energies, biomass, native ecosystems conservation and recuperation, social responsibility and sustainability.

- Top produced commodities: ⋅ Coal: 89.199.355 t. About 93 % of the production is for export. ⋅ Nickel: 127.508,57 t. All production is for export. ⋅ Gold: 2.127.659 oz. ⋅ Emeralds: 903.664,40 k. Most of the production is for export.

4.3. Key players

Sector Name

Government Ministry of Mines and Energy

Private Carboandes

SMGE (Association of large mining companies)

Asomineros ANDI

Carbones del Cerrejon

Drummond

Cerro Matoso S.A

Prodeco

Gran Colombia Gold Corp

NGO’s/ Foundations Fundación Cerrejon para el Agua en la Guajira

Fundación San Isidro De Cerro Matoso


4.4. Analysis

Opportunities can be found in: - Acid mine drainage management in gold and coal mines. - Integrated water balance model to measure and monitor water flows throughout

operations. - Minimize water losses during mineral processing. - Drought control and the use of more efficient water techniques. - Technologies that can allow reusing poor-quality process water. - Constructions of water storage facilities to use during extended dry periods. - Effluent treatment from gold mines (water contamination with heavy metals, mercury). - Tools that prevent flooding and thereby water contamination. - Treatment of contaminated pit and underground mine water. - Water management tools for the security of water for drinking water and agriculture. Drivers for investment are: - Reduction in water usage across the mining operation that can benefit local settlements

and the operation site, through reducing costs and improving operational efficiencies. - Changes and modifications to the actual policies formulated to grant the environmental

licenses for operation. - Conflicts with de agriculture sector, in almost 80 % of the agricultural area of the

country are mining rights granted, which threaten water resources and food security. Table 4.1. SWOT analysis for Dutch business opportunities for water in mining in

Colombia

Strengths Weakness

- Water and environmental impacts are high on political

agenda.

- There is a (limited) record track of Dutch solutions

providers: Eijkelkamp group and IHC

- Openness to new technologies and foreign services.

- A lack of local relationships could hamper market

entry.

- Lack of reliable data on the impacts of industrial

activities.


- Water treatment for heavy metals removal

- Potable water and sanitary systems (local settlements

and mining camps).

- Water resource management, pit lake assessment,

mine water balance.

- There is local knowledge available that could

compete with Dutch knowledge and expertise.


5. INDONESIA

5.1. Themes

Indonesia has a rich history in mining which in many cases started during the Dutch colonisation. It is one of the largest exporters of (thermal) coal, aluminium, nickel and tin. Mining production is spread through the country, but in particular present in the provinces of Papua, Bangka-Belitung, West Nusa Tenggara and East Kalimantan. Mine sites are mostly situated in remote areas at which they are often the only income for the community. Like any other country the minimisation of water and energy usage is trending as prices rise. In Indonesia however this is not directly driven by country or site-specific parameters (e.g. scarcity) but rather in the light of climate change and an increasing demand of other users. Therefore it can be expected that the drive for the implementation of water/energy saving techniques will be low. Water security and supply are generally not regarded as an issue by the community but rather the pollution that may occur as a result of mining operations.

‘It was found that the dominant and highest priority issues identified by all sectors were those involving

the community and the environment. Because of past abuses, community concerns were that mining

activities would damage the environment, with flow-on effects on livelihoods and health. Communities

reported that they were not getting the information they needed to understand the impacts of mine

water-related issues. Although there is unbiased information available in the form of the scientific

literature, it is not in a format that is accessible to them. Some of the solutions suggested were: that

academia and government do more to provide understandable, unbiased information to the

community; that mining companies could involve the community in their environmental monitoring;

and that governments require greater resources for enforcement and implementation of regulations.

Artisanal scale mining was identified as a medium level issue, due to its impact upon the environment

and the miners’ own health. The issue was not brought up by the community itself, but by the scientific

literature and company reports. Solutions are already in existence: the governments must enforce

regulations and close down illegal mines. In at least one example, a mine provided artisanal scale miners

with access to its land after the miners underwent training.

Of importance mainly to the companies, was water access for future developments, which was assigned

a medium level of priority. It is the respective government’s responsibility to ensure that there is

sufficient water for all users and it is suggested that governments adopt integrated water resource

management principles.’

[Source: Abstract of Water Issues Associated with Mining in Developing Countries, Natasha Danoucras, August

2012]


- The mining industry has a contribution of 5-6 % of total GDP. Minerals and metals

accounted for about 16.7 % of the total exports in 2012. - Mining production value ranking: #11 - Top produced commodities [per annum, ranking]:

⋅ Bauxite [30 Mt (2013), 4th] ⋅ Coal [386 Mt (2012), 5th] ⋅ Nickel [440 kt (2013), 1st] ⋅ Tin [40 kT tin-content (2013), 2nd)


- All types of mining companies are present in Indonesia: i.e. international and domestic (private and state-owned).

- A relatively new mining law was adopted (Law 4/2009), which decentralises the mining regulatory framework giving sub-national government more authority. This results in quite some problems between mining companies and the local government, which in turn causes (foreign) investors to be hesitant. In addition a ‘new environmental license’ is required next to an environmental impact assessment (EIA).

5.3. Key players

5.4. Analysis

Opportunities can be found in: - Environmental issues:

⋅ Water quality monitoring ⋅ Submarine tailings disposal

- Artisanal-scale mining (ASM) ⋅ Watercourses pollution as a result of using mercury and poor sanitation ⋅ Devegetation ⋅ Noise and air pollution ⋅ Untrained labour (capacity building)

- Large-scale ‘legal’ mining is a market that is likely to be more willing for high quality technological and sustainable solutions for effluent treatment, water supply and sanitation issues.

- Need for new mining standards, environmental policy, environmental impact assessments and enforcement of regulations (e.g. monitoring).

Sector Name

Government Regulatory bodies

- Mayor/Regent (local)

- Governor (provincial)

- Ministry of Energy and Mineral Resources (MEMR) (central)

Mining companies: - Antam Tbk (bauxite, gold, nickel, silver)

- Tambang Timah (tin)

- Bukit Asam (coal)

Private - Adaro Energy (coal)

- Bumi resources (coal)

- Freeport Indonesia (copper, gold),

- Indo Tambangraya Megah (coal)

- Rio tinto

- Vale Indonesia (nickel)

NGO’s/ Foundations - IMA (Indonesian Mining Association)

- APBI-ICMA (Indonesian Coal Mine Association)

- JATAM (Mining Advocacy Network)

- Wahana Lingkungan Hidup Indonesia (Indonesian Forum for the Environment)


Table 5.1. SWOT analysis for Dutch business opportunities for water in mining in Indonesia


- Environmental and social regulations are under

development and are intended to ensure a benefits

for the citizens

- Many mining locations are remote

- Significant amount of ASM

- Little innovation incentive at ASM and small mines


- Mines are often in locations of biological and

environmental value (small island, tropical

rainforests)

- Water monitoring

- Knowledge exchange

- Institutional development

- Capacity building

- Dutch interaction can be difficult from a historical

perspective


6. MEXICO

6.1. Themes

The Mexico mining industry is primarily located in desert areas. Consequently, water represents a major concern due to its intensive use throughout the mining processes. As a result, save on water costs and the scarcity of supply are driving most operating mining companies to optimize the use of process water, including the implementation of water recycling systems. Water competition with other users, such as agriculture and municipal users, affects also the water availability and mining operations, therefore the Mexican mining sector seeks for technologies and water management tools that can secure sufficient water to mine in a economically and environmental acceptable manner. Furthermore, the mining sector in Mexico struggles also with effluent discharges, and Acid Mine Drainage, as a result of an insufficient management of surface mine residues (tailings and slimes) and inappropriate mine closure (abandoned mine voids).

Toxic spill in Sonora copper mine causes environmental disaster:

Recently the mining firm Grupo Mexico is being responsible of a spillage of about 10 million gallons,

containing heavy metals and sulfuric acids, into the Sonora River (Northwest Mexico’s driest state). The

spills have left farmers in the area struggling to keep crops alive, and left tens of thousands of people

without access to a clean water supply. The total clean-up costs are likely to run into tens of millions of

dollars. Mine owner Grupo Mexico has pledged to pay 2 billion pesos into a trust fund to be used for

compensation and remediation purposes.


- The mining industry counts for 4.9 % of Mexico’s GDP. - The sector is regulated by the government and dominated by large multinationals,

mostly with a Mexican origin. - In 2012, 285 companies with foreign capital were operating 853 mining projects in the

country. - National companies produce 60 % of Mexican mining and the remaining 40 % are

foreign firms. - The three largest mining companies with Mexican capital are Grupo Mexico, Industrias

Peñoles and Frisco. - The market in Mexico is growing due to three factors: new technologies, foreign

investment and value of the metals. - Most representative commodities (production in 2012):

⋅ Gold: around 355.000 oz. ⋅ Silver: 5.358 T. All production is for export. ⋅ Copper: 500.275 t. ⋅ Zinc: 660.349 t.


6.3. Key players

Sector Name

Government Ministry of Economy

Ministry of Environment and Natural Resources (SEMARNAT).

Private Goldcorp

Frisco

Fresnillo

Alamos Gold

Panamerican Silver

Grupo México

Peñoles

Capstone

Associations Association of Mining Engineers Metallurgists and Geologists of Mexico

(AIMMGM)

Mining Chamber of Mexico (CAMIMEX)

National Chamber of Industry Iron and Steel (CANACERO)

6.4. Analysis

Opportunities can be found in: - Contamination of land and water with toxic leachate elements such as cyanide and

mercury - Acid Rock Drainage management - Reuse and process water efficiency - Wastewater treatment for discharge - Drought control and the use of more efficient water techniques Table 6.1. SWOT analysis for Dutch business opportunities for water in mining in

Mexico

Strengths Weakness

- Strong will to implement best practices that can

guarantee good environmental performance.

- Strong environmental laws and a commitment to

uphold them.

- A lack of local relationships could hamper market

entry.

- Security issues


- Discharge standards are getting stricter, which will

drive increased treatment requirements.

- Opportunities for water recycle and reuse.

- Need for better management of water resources and

new/alternative water supply to compensate for

existing water rights.

- Strong presence of many international service

providers who are well established in the market.

- Mining community is well trained, both at the

professional and skilled labour levels, and fully in

tune with the latest mining technologies.


7. MOROCCO

7.1. Themes

Morocco is the world 3th producer of phosphate. The phosphate industry is a major contributor to the economy of the country. Large volumes of water are required by this mining industry from areas where water resources are scarce or limited. Water scarcity may be worsened by a degradation of the water quality after phosphate processing. The pressure on water is liable to hamper the development of phosphate industry and results in competition with other water reliant economic sectors such as agriculture. The reduction of tensions on water resources (quantity and quality) at regional scale is one of the major challenges to be faced in order to consolidate the sustainable development of the phosphate mining industry. Furthermore, the mining industry has a need for more efficient techniques and management tools to use water efficiently, and to assist in the management of abandoned mines without rehabilitation programs, which generate major environmental and social-economic problems.

The Kettara site is an abandoned pyrrhotite ore mine in a semi-arid environment. The site contains more than

3 million tons of mine waste that were deposited on the surface without concern for environmental

consequences. Tailings were stockpiled in a pond, in a dyke, and in piles over an area of approximately 16

ha and have generated acid mine drainage (AMD) for more than 31 years. In order to investigate the scale of

pollution, investigations on site have been performed in the last 5 years. Nevertheless it remains polluted,

until today.


- The mining sector represents about 5 % of the GDP and contributes about 35 % of

foreign trade, including about 75 % of Morocco’s export. - The majority of the industry remains under state control, which acts as a major

limitation on potential opportunities for foreign investors. - Top produced commodities:

⋅ Phosphate rock: 28 Mt/year, 3th world rank. ⋅ Besides phosphate: Barite, Clays, Cobalt, Copper, Iron ore, Salt, Silver, Talc and

Diamonds.

7.3. Key players

Sector Name

Government The Office of Petroleum and Mines (ONHYM)

Office Chérifien des Phosphates (OCP)

Private Maya Gold and Silver INC.

Imiter

Igoudrane

Kasbah Resources

Metalex Ventures



7.4. Analysis

Opportunities can be found in: - Acid Mine Drainage management. - Mine tailings. - Water recycling - Management of heavy metals and minerals in water bodies. - Management of phosphate rock in the water system causing eutrophication. - Sustainable phosphate recovery techniques. - The need for risk management to prevent collapse of quarries, accidents in abandoned

wells, and also the further degradation of vegetation around the mine and contamination of the surrounding area.

- Methodologies for integrated water resources management in the zone of influence of the mine sites and supply technological innovations to reduce the pressure on water resources, in mining practices.

Table 7.1. SWOT analysis for Dutch business opportunities for water in mining in

Morocco

Strengths Weakness

- The state provides mining investors with a safe

operating environment alongside security of

investment.

- There are a number of incentives for mining

companies, such as: 50 % reduction in tax for miners

that export their products and exemptions on customs

duties and some taxes for imported equipment.

- The well-developed infrastructure

- Water and wastewater issues are low on the

agenda when it comes to capital investment.


- Rising water costs and increasing water scarcity could

drive increased interest in exploring opportunities for

water efficiency techniques and management.

- Phosphate recovery knowledge.

- Due to the increased in scrutiny, abandoned mines

need to be cleaned up. Therefore opportunities arise

for state-of-the-art tailing and AMD treatment.

- The Phosphate mining is coming to its end in the

next coming 50 years.

- Conservative mining legislative system.


8. PERU

8.1. Themes

Peru is South America’s most water stressed country. Water draining from the Andean highlands serves as a water tower that supports the downstream population and attendant agricultural activities, including the country’s dynamic agricultural export economy. The Tyndall Centre for Climate Change Research identifies Peru as the world’s third most vulnerable country to the impacts of climate change. - Many mining companies are in the Andean Heights - the Peruvian water tower -

leading to problems with: ⋅ Water supply:

- Mining companies are often located in headwater areas using large part of the water resources.

⋅ Waste water: - Quality of water bodies: Mining activities are often contaminating, e.g. acid mine

drainage. - Legal issues:

⋅ Mining users and Coast and Jungle region users are allocated water and land resources, which were formerly in hands of indigenous people who get no acknowledgement of their water rights.

- Mining vs agriculture.

The Madre de Dios region of southern Peru is rich with both life and gold, and the latter threatens the former.

A recent gold rush, prompted by skyrocketing prices and enabled by a new highway, have brought tens of

thousands of hopeful miners to the region. Back in 2009, scientists showed that the three big mines—

Huepetuhe, Guacamayo and Delta-1—had already claimed 15,500 hectares of forest, and were growing at a

rate of 1,900 more every year. Greg Asner from the Carnegie Institution for Science has found that the

situation is even worse. The big mines like Guacamayo are an obvious problem, but thousands of smaller

ones have sprung up in the last few years. They’re extremely hard to find or control, and Asner found that

they collectively account for more than half the gold-mining in the region.

‘The Ministry of Environment estimates that there are 50,000 to 70,000 of these miners in the region,’ says

Asner. ‘They’re working on groups of three to ten, so that’s a lot of mining.’ Everyone was focusing on the

big, gaping wounds, and ignoring the subtler infections creeping through the Amazon’s skin. The small

mines look like deep pits in forest clearings, up to 10 metres deep with debris and mud at the bottom. The

miners cut down a small stand of trees, dig away the top layers of soil and blast away at what remains with

high-pressured water. They transfer the resulting slurry into an oil drum and add mercury. ‘Someone stands

in the drum and starts jumping up and down. It’s like squishing grapes,’ says Asner. The mercury binds to

any gold in the mud, which the miners filter out with a pan. The nuggets are dried and heated, releasing even

more mercury into the air as a vapour. It’s no surprise that the miners often suffer from mercury poisoning,

as do people who live in nearby towns or settlements, or downstream of polluted rivers.

[Ed Yong, National geographic, October 28, 2013]


- Mining production value ranking: #9 - Top produced commodities [per annum, ranking]:

⋅ Copper [1.3 Mt (2013), 3rd] ⋅ Gold [150 t (2013, 5th]


⋅ Silver [3.5 kt (2013), 3rd] ⋅ Zinc [1.29 Mt (2013), 3rd] ⋅ Lead [250 kt (2013), 4th] ⋅ Molybdenum [16.9 kt (2013), 4th] ⋅ Tin [26.1 kt (2013), 3rd]

- Major sector of the country as mining generated 14.4 % of the GDP and contributed 58 % of the exports in 2013.

8.3. Key players

Sector Name

Government Ministry of energy and mines (MINEM)

Water Authority (Autoridad Nacional de Agua - ANA)

Private National Society of Mining, Petroleum and Energy

Companies:

- Compañía de Minas Buenaventura S.A.

- Compañía Minera Atacocha S.A.

- Compañía Minera Milpo S.A.

- Compañía Minera Poderosa S.A.

- Compañía Minera Raura S.A.

- Consorcio Minero Horizonte S.A.

- Doe Run Peru S.R.L.

- Empresa Siderúrgica del Perú. S.A.

- Fortuna Silver Mines Inc.

- Gold Fields La Cima S.A.

- Industrias Electro Quimicas S.A.

- Minsur S.A.

- Minera Barrick Misquichilca S.A.

- Shougang Hierro Peru S.a.a.

- Sociedad Minera Cerro Verde S.A.

- Sociedad Minera El Brocal S.A.

- Southern Peru Copper Corp., Sucursaldel Peru

- Volcan Compañía Minera S.A.

- Xstrata Tintaya S.A.

- Zinc Industrias Nacionales S.A.

NGO’s/ Foundations - Geological, Mining and Metallurgical Institute (El Instituto Geológico Minero y

Metalúrgico - INGEMMET)

- Many grass-roots NGO’s on themese ranging from poverty to indigenous

people, water use and land rights.

8.4. Analysis

Opportunities can be found in: - Water management


Table 8.1. SWOT analysis for Dutch business opportunities for water in mining in Peru


- - Analytical observers point to the economic and

ecological zoning of land, as well as water

resources management, as a key legal and

regulatory issue that underlies social tensions.


- Dutch expertise on organisational aspects of water

management

- The main foreign investors in Peru are Chinese

companies, which are looking for copper and iron;

followed by companies from USA, Canada and

Switzerland, which are looking for copper and gold.

- Presence of established competitors at the level of

water management and technologies


9. POLAND

9.1. Themes

The mining industry in Poland has become one of the largest in Europe, in terms of hard-coal production. This has caused large-scale deterioration of the environment, especially to water resources. The mining activities in the hard coal fields have led to droughts, surface and groundwater pollution. Due to this, there is a need for techniques and management tools that minimize water loss during mineral and metal processing, and prevent groundwater pollution.

The mining activities in the Upper Silesian coal field in the Katowice region have a detrimental impact on the

water resources, mainly due to saline wastewater discharges. In extracting coal, many mines in the Katowice

region discharge wastewater containing high concentrations of saline minerals. These discharges impact

negatively the ecosystems and river life and increase costs for drinking water treatment downstream. The

increased salinity in the rivers is of great impact, also because of the fact that Poland is poorly endowed with

freshwater resources, and the ratios for available water resources is one of the lowest in Europe.


- Mining accounts for about 3.5 % of the total GDP. - State ownership is still widespread in Polish mining industry, although the government

is trying to encourage private ownership. - Most mining activities in construction and industrial minerals are private. - Poland is the biggest producer of bituminous coal, copper and sulphur minerals in

Europe. - The top produced commodities:

⋅ Coal: one of Europe’s top producers ⋅ Copper ⋅ Lead ⋅ Silver ⋅ Sulphur ⋅ Zinc ⋅ Rhenium

9.3. Key players

Sector Name

Government The Ministry of Mines of Treasury

State Mining Authority

Polish Geological Institute

Private Kompania Węglowa

KGHM Polska Miedz

Jastrzębska Spółka Węglowa

New World Resources

Ostravsko-karvinské dol

Lubelski Wegiel

NGO’s/ Foundations Mining Chamber of Industry and Commerce

Association of Opencast Mines in Wrocław

Association of Mining Engineers and Technicians


9.4. Analysis

Opportunities can be found in: - Remediation of abandoned surface coal mining sites. - Reuse of water. - Effluent discharge management (saline wastewater discharges). Table 9.1. SWOT analysis for Dutch business opportunities for water in mining in

Poland

Strengths Weakness

- Member of the European Union.

- High level of education.

- Environmental awareness.

- Regulations in Poland are designed to protect

active mining operations rather than water quality

and the environment.


- EU cohesion funding could stimulate collaboration

between the Dutch water sector and Polish mining

industry.

- In the past, there have been complaints about

discrimination in public procurement contracts

resulting from provisions in legislation favouring

domestic firms.


10. ROMANIA

10.1. Themes

Although Romania has large reserves of minerals and metals in the ground the overall production is not a significant amount on the world market. During the communist regime the Mineral and metal industry had big impact on the country’s economy. But after the fall of the wall, in 1989, the state owned companies failed to compete with the international mining market, mostly due to out-dated mining equipment and reduction of state aid. After the European Union membership was achieved a steep decline in metallic ore mining activities decreased even further. Most state owned mining companies make losses and the government has plans to restructure the sector. This restructuring is modernization of mining technologies, closure of non-profitable mines, increase of environmental awareness and the privatisation of the sector. The main water related issues are the failure of monitoring of water quality and quantity, the sufficient treatment and clean up of wastewater treatment in abandoned mine areas, groundwater contamination, air pollution due to dried up abandoned mine tailings, and water competition (food, and drinking water security).

Recently the European Commission is following Romania in an infringement process with action in the

Justice Court of the EU for not respecting the law regarding mining waste. The case: a decanting lagoon of

102 hectares, where waste from Copper and Zinc mining was dumped and abandoned. It’s something going

on for some years (the Romanian mining company was closed in 2010 and was supposed to be taken over

by a Swiss company). It is now the state’s responsibility to clean the area.


- The mining industry accounts around 2.2 % of the total GDP. - Restructuring of the sector is taking place: from state owned to privately owned. - Operating mines are upgrading technologies for mineral processing. - EU Policies: Raw Materials Initiative by EC, Horizon 2020. - The important commodities are:

⋅ Gold ⋅ Lead ⋅ Zinc ⋅ Copper ⋅ Coal: estimated at 650 million tones ⋅ Iron

10.3. Key players

Sector Name

Government Ministry of Economy

General Directorate for Mineral Resources

National Agency of Mineral Resources


Sector Name

Private Patromin

Gabriel Resources

Moldomin

Mineco

RTZ Partners

National Coal Society

Somentra

Oltenia Energy Complex

NGO’s/ Foundations Business development group

National Federation of Energy Mines

10.4. Analysis

Opportunities can be found on monitoring of water quality and quantity, water use reductions and improvement of pre-treatment and treatment of wastewater. Table 10.1. SWOT analysis for Dutch business opportunities for water in mining in

Romania

Strengths Weakness

- The will of the Romanian government to change

towards a more sustainable, profitable, and privatized

mining sector

- BDG provides foreign companies with their business

strategy when entering the Romanian market.

- EU member.

- Heavily state owned sector with difficulty in

transitioning to privately owned.

- Failure of monitoring of water quality and quantity

- Lack of focus in regulations and sector strategy on

the water aspect.

- Companies investing in technology modernization

and not environmental issues.

- Dust, sterile landfills and noise are of more

concern than water pollution


- Work with European cohesion subsidies collaboration

between the Dutch water sector and Romanian

mining industry.

- Find contacts within the Business Development

Group.

-


11. RUSSIA

11.1. Themes

Russia is a major minerals producer, being a global leader in several products, including diamonds, nickel, copper, coal, gold, PGE’s, tin and bauxite. However, since the dissolution of the Soviet Union, Russia has struggled to maintain its ailing mineral industry. Many of its primary minerals are now located outside of the country in other independent CIS states. The reciprocal also applies, as Russia was the main producer of oil and gas supplies to the CIS. This has placed a strain on trade and import/export agreements and as a result, production for most commodities has dropped by as much as 50 %.

Ore is smelted on site at Norilsk. The smelting is directly responsible for severe pollution, including acid rain

and smog. By some estimates, 1 percent of the entire global emission of sulfur dioxide originates here.

Heavy metal pollution in the area is so severe that the soil itself has platinum and palladium content which is

feasible to mine. The pollution originating from Kola division of the company is also affecting Norway which

since 1990 has offered financial support to clean up the operation. Due to a number of factors, however, this

has not materialized.

Rosprirodnadzor (Federal Environmental, Industrial and Nuclear Supervision Service of Russia) took water

samples in Norilsk as part of the check up. The check up was initiated by the group of the city dwellers who

filed the petition claiming deterioration of water quality due to industrial activity of NN branch in this city.

Newspaper Kommersant was informed by Oleg Mitvol, the Chairman of Rosprirodnadzor, that results of the

water tests were expected to be ready by the end of August. Company official said in their comment that NN

spent over 19 bln roubles on environmental activity and 1 billion more will be spent till 2015. When asked by

the reporter if Norilsk Nickel can suffer any consequences after the results of the check up, the state official

said that he won’t make any promises or predictions.

[http://en.wikipedia.org/wiki/Norilsk_Nickel]


- Mining sector generated 1.9 % of the GDP and contributed 6.6 % of the exports of

Russia in 2010. - Mining production value ranking: #5 - Top produced commodities [per annum, ranking]:

⋅ Iron ore [105 Mt (2013), 5th] ⋅ Gold [220 t (2013), 4th] ⋅ Silver [1.7 kt (2013), 4th] ⋅ Platinum [25 t (2013), 2nd] ⋅ Paladium [82 t (2013), 1st shared with South Africa] ⋅ Nickel [250 kt (2013), 3rd] ⋅ Sulphur (all forms) [7,3 Mt, 3rd] ⋅ Coal [354.8 Mt (2012), 6th]

- Russia's metal mining market is dominated by big (public) companies since privatizations are completed. The privatization of the state-owned companies caused a few people (‘oligarchs’) to get a large share for little money. Under Putin reign the state regained more control over assets (mainly gas and oil) and refrains from further privatization.


11.3. Key players

Sector Name

Government -

Private - Norilsk Nickel

- UC Rusal (alumina)

- Novolipetsk Steel

- Evraz Group (steel)

- Severstal (steel)

- Magnitogorsk (steel)

- Polyus (gold)


11.4. Analysis

Opportunities can be found in: - Collaborations with local partners (access to market through networking) Table 11.1. SWOT analysis for Dutch business opportunities for water in mining in

Russia


- Recognised for water brand - Permits and regulations may apply to services and

equipment

- Import difficulties

- Language barrier


- Outdated materials and equipment - current tensions regarding the developments in

Ukraine

- Economic sanctions

- Foreign competition (e.g. China)


12. SOUTH AFRICA

12.1. Themes

South Africa is considered to be a water-scarce country. Changes in rainfall patterns, growing populations and increased industrial and mining activity have impacted negatively the water resources in the country. The improvement of water conservation, water quality and water-use efficiency is therefore a key national priority. Water is essential for the mining activities and represents currently a significant cost and risk for operating mines and future projects. The growing scarcity of supply is driving most of the large companies to optimise the use of water in their processes. In addition, the sector is taking more of the low-grade resources than they should. This will imply the use of more processing water and therefore more infrastructure and energy will be required. The reduction of energy and greenhouse gas emissions related to water and wastewater management and the management of Acid Mine Drainage, as the most important threat to water quality in South Africa, are currently issues demanding sustainable solutions. Furthermore, meeting discharge standards, environmental regulation and mine closure preparations are also important challenges that will increase treatment and management requirements.

In the Witwatersrand, located around the city of Johannesburg, there is potential AMD impact on

infrastructure of the city, its people and its water resources. The issue has received much public attention

due to the scale of the problem. It is estimated that the volume of AMD requiring treatment in the

Witwatersrand Goldfield alone could ultimately amount to 350 Ml/day. Various studies were conducted into

available and emerging technologies to determine their suitability for addressing the problem. The national

Department of Water affairs is looking into short and long-term decision-making, including identification of

preferred technologies.


- The mining industry has a contribution of 7.5 % of the total GDP and 37.4 % of all

exported products are minerals and metals. - Large companies dominate the sector, followed by smaller ‘junior’ miners, which make

a relatively minor contribution to overall production. - Currently mining licenses are moving from hand to hand. People are selling mining

licenses, rather than getting into operation. - Mechanisation of the process is increasing; this will imply a reduction of labour. - Increasing competition for water for alternative uses (urban, agriculture, industrial). - Sector driven by commodities and market prices. - The top produced commodities [annual production (year), world rank]:

⋅ Gold [145 t (2013), 6th] ⋅ Platinum [140 t (2013), 1st] ⋅ Palladium [82 t (2013), 1st shared with Russia] ⋅ Coal [260 Mt (2012), 7th]

12.3. Key players

Sector Name

Government Department of Water Affairs

Department of Mineral Resources

Department of Environmental Affairs


Sector Name

Private Anglo American

BHP Billiton

Impala Platinum

Gold Fields

Exxaro

Harmony Gold

African Rainbow Minerals

Assore

Knowledge Institutes University of the Witwatersrand

The Water Research Commission (WRC)

The Council for Scientific and Industrial Research (CSIR)

12.4. Analysis

Opportunities can be found in: - Reuse of water, technologies that minimize the use of water. - On-site water management and treatment prior to discharge. - Treatment of liquid effluents with high salt loads, sulphates and heavy metals. - Treatment of very high and very low pH waters. - Acid Mine Drainage management in gold mines on the Witwatersrand and coal mines

in Mpumalanga. - Need for options to improve performance of RO systems, and alternatives to RO for

AMD treatment. Table 12.1. SWOT analysis for Dutch business opportunities for water in mining in

South Africa

Strengths Weakness

- Good reputation of Dutch technologies and service

providers in the local market.

- Availability of some financial support for project

implementation.

- Water and wastewater issues are low on the

agenda when it comes to capital investment.

- A lack of local track record.

- There is some resistance to trying new

technologies.


- Technologies suppliers for AMD management in

Witwatersrand.

- Technologies for water savings and recycling.

- Discharge standards are getting stricter, which will

drive increased treatment requirements.

- A strong local technical knowledge.

- Strong presence of many international service

providers.

- Preference for using technologies which people

are already comfortable with.

Witteveen+Bos, appendix II to report ZZBOR8000-14-311/15-d000.385 dated 15 January 2015

APPENDIX II GLOBAL EVENTS CALENDAR

Witteveen+Bos, appendix II to report ZZBOR8000-14-311/15-d000.385 dated 15 January 2015

- Water Week Latin America, 23-27 March 2015, Viña del Mar, Chile

⋅ http://waterweekla.com/en/ - 10th International Conference on Mine Closure, 1-3 June 2015, Vancouver, Canada

⋅ http://mineclosure2015.com - Mine Water Solutions in Extreme Environments, 12-15 April 2015, Vancouver, Canada

⋅ http://www.minewatersolutions.com - Water Management in Mining 11-12 February 2015, Johannesburg, South Africa

⋅ http://www.watermanagementmining.com - Aachen International Mining Symposia (AIMS 2015) Fifth International Symposium

‘Mineral Resources and Mine Development’, 27-28 May 2015, Aachen, Germany ⋅ http://www.aims.rwth-aachen.de

- Feria Minera, September 2015, Colombia

⋅ http://en.miningcolombia.com/default.aspx?id=20 - Mining and the Environment Conference, 24-25 February 2015, West Perth, Australia

⋅ https://www.amec.org.au/events/mining-and-the-environment-conference-2015 - Exponor, 11-15 May, Chile

⋅ http://www.exponor.cl/en/

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