Sharing the benefits from water as a new approach to regional water targets for mining companies

Abstract

Abstract:Most major mining companies have articulated strategies and targets to minimise the impacts of operations on surface and groundwater resources. However, the focus tends to be on mitigating negative impacts. In this field note, we make two contributions to assist mining sites in playing a positive role in implementing Integrated Water Resources Management (IWRM) aspirations. First, we introduce the notion of "water benefits" as a pathway for operationalizing regional IWRM objectives at a mine site level. Second, we propose a decision making framework to facilitate investment in water benefits. The framework comprises of five steps: (1) Select system boundary wherein benefits are to be delivered; (2) Quantify water availability; (3) Determine potential benefits; (4) Identify acceptable benefits; and (5) Implementation and monitoring. For a site to deliver water benefits that extend beyond the legal obligation of the company, we contend that there must be a sound business case. We therefore distinguish between steps that should be decided by the business (steps 1, 2 and 4) from those that should be completed in collaboration with the broader community (steps 3 and 5).Within this field note we do not test the practical utility of the framework in an empirical setting and as such it is not intended to be prescriptive. Rather, we seek to provide a foundation for scholarly/industry debate about how decision makers at a mine site level could take a more active role in contributing towards IWRM aspirations. We conclude that a "water benefits" perspective offers a novel basis for establishing regional water targets and could serve numerous advantages at a site-level including improved recognition about the value of water and improved understanding and mitigation of strategic water-related risks.

Water Stewardship: Attributes of Collaborative Partnerships between Mining Companies and Communities

“…Of note, in the years 2000-2017, water was an issue in dispute within 58 per cent of cases filed against mining investments with the International Finance Corporation's (IFC) Compliance Officer Ombudsman [9]. The sources of community conflict can be diverse, ranging from poor environmental stewardship practices, concerns about water quality impacts, or tensions due to the considerable volumes of water used by mining relative to surrounding users [10]. In an industry that has tended to treat community engagement as an add-on (versus a strategic business function) [11], one factor motivating corporate action on water stewardship is the cost of conflict.…”

“…These efforts typically focus on reducing water volumes used for mining, re-using water from operations within the mining process, and designing zero discharge facilities that seek to capture and recycle all water from the site. More recently, there is growing pressure on the sector to adopt a catchment (or water basin) approach by becoming a proactive participant in resolving regional water challenges outside the mining concession or permit areas [10,17,18].…”

Integrated hydrological and economic modelling of a mining region

“…There is also a potential to use water markets to assign value to low quality water (Barrett et al, 2010), including worked water, contaminated runoff and tailings water. These markets could be fostered amongst users who do not necessarily require high quality water (Kunz andMoran, 2014, Barrett et al, 2010), and they would allow using resources that are currently seen as waste (Petritz et al, 2009, Dale et al, 2013a.…”

“…Some of the triggers of these conflicts, including water scarcity and surplus (Northey et al, 2014, and the negative impacts of mining on water quality (Kuipers et al, 2006, Lovingood et al, 2004, Amezaga et al, 2010, Dold, 2014, have received attention from researchers. However, water resources management with a catchment scale approach in mining regions has received less attention (ICMM, 2012, Kunz andMoran, 2014).…”

“…This may go beyond market prices (WBCSD, 2013), as water abstractions can be free, subsidised, or rated below the real derived value. This analysis allows the exploration of the trade-offs between using water for mining or other purposes, including environmental flows (Kunz and Moran, 2014). The economic values can also be calculated for current and future scenarios, and they may include direct and indirect economic effects.…”