{"id":1140580,"date":"2019-09-26T11:45:37","date_gmt":"2019-09-26T16:45:37","guid":{"rendered":"https:\/\/www.mining.com\/?p=1002963"},"modified":"2019-09-26T11:45:37","modified_gmt":"2019-09-26T16:45:37","slug":"access-to-water-one-of-miners-biggest-challenges-ahead-study","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1140580","title":{"rendered":"Access to water one of miners\u2019 biggest challenges ahead \u2014 study"},"content":{"rendered":"<p>Stricter environmental regulations and changing climate<br \/>\npatterns resulting in the worst droughts in more than half a century, have multiplied<br \/>\nthe mining industry\u2019s challenges to secure water supplies, Moody&#8217;s Investors<br \/>\nService says in a new report.<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>Despite successful efforts to manage water usage more efficiently, increasingly tougher environmental rules are hiking miners\u2019 costs and risks, particularly to those operating in <a href=\"https:\/\/www.wri.org\/news\/2019\/08\/release-updated-global-water-risk-atlas-reveals-top-water-stressed-countries-and-states\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">arid regions or close to populated communities<\/a>. <\/p>\n<p>&#8220;Many countries, including Peru, Chile, Australia,<br \/>\nSouth Africa and Mongolia, have large mining operations exposed to decreasing<br \/>\nwater availability,&#8221; Moody&#8217;s senior vice president, Carol Cowan, says.<br \/>\n&#8220;In the next 20 years, all of these countries will be in the high to<br \/>\nextremely high ratio of water withdrawals to supply, which will make it<br \/>\ndifficult for companies to secure reliable sources.&#8221;<\/p>\n<h2><strong>Squeezing water rights<\/strong><\/h2>\n<p>Chile, the world\u2019s largest copper producer and No.2 global<br \/>\nsource of lithium, is just one of many jurisdictions where miners will soon<br \/>\nhave to deal with broader water use restrictions.<\/p>\n<p>The nation\u2019s water authority DGA announced earlier this year<br \/>\nthat it would more than double the number of so-called prohibition areas across<br \/>\nthe country to at least 70 from 30. No new licenses will be awarded within<br \/>\nprohibition zones and any extension to existing mining permits will need to be<br \/>\napproved by environmental authorities.<\/p>\n<p>At the same time, companies\u2019 demand for water is expected to jump 12% through 2029 as ore grades decline, forcing miners to process more material to maintain production levels.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/water-stress-by-country-map-1024x759.jpg\" alt=\"Access to water one of miners\u2019 biggest challenges ahead \u2014 study\" class=\"wp-image-1002964\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/water-stress-by-country-map-1024x759.jpg 1024w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/water-stress-by-country-map-300x222.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/water-stress-by-country-map-768x569.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><em>Source: <a href=\"https:\/\/www.wri.org\/news\/2019\/08\/release-updated-global-water-risk-atlas-reveals-top-water-stressed-countries-and-states\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\"> World Resources Institute.<\/a><\/em><\/figcaption><\/figure>\n<p>Miners have responded by building large desalination plants, which is expected to more than triple seawater use in the country, <a href=\"https:\/\/www.cochilco.cl\/Listado%20Temtico\/proyeccion%20agua%20mineria%20del%20cobre%202018-2029%20-%20vf.pdf\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Chile\u2019s copper commission (Cochilco) predicts<\/a>.<\/p>\n<p>Miners\u2019 hurdles are exacerbated when using the ground and surface water that local communities rely on. This has resulted in social unrest and <a href=\"https:\/\/www.mining.com\/chiles-ruling-party-advocates-for-exempting-mining-from-glacier-regulations\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">prompted stricter norms<\/a> and permitting processes. <\/p>\n<p>Protests across the globe, including in Peru, Mexico, <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.mining.com\/lydians-gold-project-in-armenia-faces-yet-another-environmental-review\/\" >Armenia<\/a>, <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/7news.com.au\/news\/crime\/desperate-farmers-fight-qld-mine-for-water-c-455316\" >Australia<\/a> and the US over the last few years, have caused delays in the construction of new mines or in the expansion of existing ones.<\/p>\n<h2><strong>Large miners better prepared<\/strong><\/h2>\n<p>In Moody\u2019s opinion, higher capital spending and operational<br \/>\ncosts associated with securing reliable water supply will be better managed by<br \/>\nlarge, globally diversified firms. <\/p>\n<p>World\u2019s No. 1 miner BHP already gets more than 40% of the water it needs from the ocean. The miner <a href=\"https:\/\/www.mining.com\/chile-mulls-making-water-desalination-mandatory-for-miners-44504\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">spent $3.43 billion on a desalination plant<\/a> for its Chilean Escondida mine, which includes two pipelines to transport the water 3,200 meters above sea level.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>With water levels expected to continue depleting, smaller mining companies with limited financial flexibility may face increased costs related to securing water supply.<\/p>\n<p><cite>Moody&#8217;s senior vice president, Carol Cowan.<\/cite><\/p><\/blockquote>\n<\/figure>\n<p>The miner has also committed to stop using fresh water drawn from the surface and underground in Chile by 2030.<\/p>\n<p>Southern Copper&#8217;s long delayed $1.4-billion T\u00eda Maria project includes plans for a desalination plant that would cost about $100 million. The facility is expected to ease protesters <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.mining.com\/peruvian-government-suspends-southerns-construction-licence-for-tia-maria-project\/\" >concerns about the proposed mine\u2019s use of local surface and ground water<\/a>. <\/p>\n<p>Other companies are more focused on using recycled water by capturing what is used in the various parts of the process, such as in tailings dams, by treating and reusing it.<\/p>\n<p>\u201cWith water levels expected to continue depleting, smaller<br \/>\nmining companies with limited financial flexibility may face increased costs<br \/>\nrelated to water procurement over time,\u201d Cowan says.<\/p>\n<p>Other than their high cost, desalination plants pose and additional worry to miners related to the waste they generate. That product, brine, is usually pumped back into the reservoir where the water was taken from. This causes an imbalance in the overall water composition, which is harmful to the environment within the sourcing body.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite successful efforts to manage water usage more efficiently, tougher environmental rules are increasing miners&rsquo; costs and risks, particularly those operating in arid regions or close to populated communities.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,369,2857,2640],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1140580"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1140580"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1140580\/revisions"}],"predecessor-version":[{"id":1140604,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1140580\/revisions\/1140604"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1140580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1140580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1140580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}