Water footprint and its relevance and usefulness to mining operations in South Africa. (Many slides contributed by Water Footprint Network)

1. Water Footprint and Mining
South Africa
Kate Laing
Pegasys Strategy & Development
30 November 2011
www.waterfootprint.org

2. The Water Footprint Network
Mission: Promoting sustainable, equitable and efficient
water use through development of shared standards on
water footprint accounting and guidelines for the reduction
and offsetting of impacts of water footprints.
Network: bringing together expertise from academia,
businesses, civil society, governments and international
organisations.

3. Overview
1. Introduction to Water Footprint
2. How a Water Footprint is calculated?
3. The water impacts of mining
• What would a mining water footprint look like?
4. Who is interested in Water Footprint?
• Water Footprint & Policy
• Water Footprint & Corporates
• Water Footprint & Consumers
5. Water Footprint Response

4. The Beginning: Virtual Water

5. Globalization of Water
Economic perspective:
Water-abundant regions have an advantage
over water-scarce regions, but water is not
factored into the price of commodities.
Environmental-social perspective:
Consumers indirectly contribute to water
depletion and pollution elsewhere, without
covering the cost.
Political perspective:
Several nations become increasingly
dependent on external water resources. Water
becomes a geopolitical resource.

6. The Water Footprint of a product
• The volume of fresh water used to produce the product,
summed over the various steps of the supply chain.
• This is the same concept as virtual water.
• However, a water footprint goes on to:
• Quantify the actual volume
• Consider of the type of water used
• Consider when and where the water is used.

7. [Hoekstra & Chapagain, 2008]

8. [Aldaya & Hoekstra, 2009]

9. [Hoekstra & Chapagain, 2008]

10. [Hoekstra & Chapagain, 2008]

11. [Hoekstra & Chapagain, 2008]

12. [Hoekstra & Chapagain, 2008]

13. [Hoekstra & Chapagain, 2008]

14. [Hoekstra & Chapagain, 2008]

15. Type of water used
Green water footprint
► volume of rainwater evaporated or incorporated into product.
Blue water footprint
► volume of surface or groundwater evaporated,
incorporated into product or returned to another catchment or the sea.
Grey water footprint
► volume of polluted water.

16. Components of a Water Footprint
Direct water footprint Indirect water footprint
consumption
Green water footprint Green water footprint
Water
Water withdrawal
Non-consumptive water
use (return flow)
Blue water footprint Blue water footprint
pollution
Water
Grey water footprint Grey water footprint
The traditional
statistics
on water use
[Hoekstra, 2008]

17. [Hoekstra & Chapagain, 2008]

18. [Hoekstra & Chapagain, 2008]

19. Water Footprint of the EU‟s Cotton
Consumption
[Hoekstra, 2008]

20. Water footprint of EU‟s Cotton Consumption
Blue Water
421
Mm3/yr
2959M
m3/yr
581
Mm3/yr
803
Mm3/yr
450
Mm3/yr
533
Mm3/yr
690
Mm3/yr
2459
Mm3/yr
Blue water footprint
Million m3/yr
EU25's impact on blue water resources
[Hoekstra & Chapagain, 2008]

21. Water footprint of EU‟s cotton consumption
Green Water
485
Mm3/yr
165
Mm3/yr
325
186
Mm3/yr
Mm3/yr
283
Mm3/yr
3467
Mm3/yr
Green water footprint
Million m3/yr
EU25's impact on green water resources
[Hoekstra & Chapagain, 2008]

22. Water footprint of EU‟s cotton consumption
Grey Water
92
310 Mm3/yr
Mm3/yr
635
Mm3/yr
102
Mm3/yr
398
83 Mm3/yr
Mm3/yr
409
Mm3/yr
697
Mm3/yr
Dilution water footprint
Million m3/yr
EU25's impact on global water resources due to pollution
[Hoekstra & Chapagain, 2008]

23. Water footprint:
Makes a link between consumption in one place and
impacts on water systems elsewhere.
Shrinking Aral Sea

24. Water footprint:
Makes a link between consumption in one place and
impacts on water systems elsewhere
Endangered Indus River Dolphin
[Photo: WWF]

25. Water Footprint vs Carbon Footprint
Water footprint Carbon footprint
• measures freshwater • measures emission GH-
appropriation gasses
• spatial and temporal • no spatial / temporal
dimension dimension
• actual, locally specific values • global average values
• always referring to full supply- • supply-chain included only in
chain „scope 3 carbon accounting‟
• focus on reducing own water • many efforts focused on
footprint (water use units are offsetting (carbon emission
not interchangeable) units are interchangeable)

26. WF vs Life Cycle Assessment
Water footprint LCA
• measures freshwater • measures overall
appropriation environmental impact
• multi-dimensional (type of • no spatial dimension
water use, location, timing)
• actual water volumes, no • weighing water volumes
weighing. based on impacts

27. How is a Water Footprint Calculated?

28. Type of water used
Green water footprint
► volume of rainwater evaporated or incorporated into product.
Blue water footprint
► volume of surface or groundwater evaporated,
incorporated into product or returned to another catchment or the sea.
Grey water footprint
► volume of polluted water.

29. The green and blue water footprint in relation to the
water balance of a catchment area
Green water footprint Blue water footprint
Non
production-related
Precipitation Production-related Water contained Production-related Water contained Water transfer to
evapotranspiration
evapotranspiration in products evapotranspiration in products other catchment
Catchment area
Abstraction Return flow
Runoff at Runoff from
Soil and vegetation field level Ground- and surface water catchment
[Hoekstra et al., 2011]

30. Green Water Footprint
Green water footprint
• Volume of rainwater evaporated or incorporated into a
product.
• Particularly relevant for agricultural products.
• Typically measured as rain water crop evapotranspiration
• There are some industrial examples of direct use of
rainwater.
.

31. Blue Water Footprint
Blue water footprint
• Volume of surface or groundwater consumed in the production
of a good.
• Consumption refers to the volume of surface water:
• Evaporated or incorporated to a product
• Or abstracted and returned to another catchment/the sea
• In agricultural products this is typically irrigation.
• In industrial production this is BOTH surface and ground water
abstraction.
.

32. Grey Water Footprint
Grey water footprint
• Volume of polluted freshwater associated with the production
of a product over its full supply-chain.
• Calculated as the volume of water that is required to
assimilate pollutants based on ambient water quality
standards.
.

33. Grey water footprint in a catchment
Assimilative capacity
1. WFgrey < R
not fully used
Level of
pollution
L (kg)
Critical Full assimilative
load 2. WFgrey = R capacity of the river
used
L1 L2 L3
Critical load is when assimilation
capacity is fully consumed Pollution exceeding
the assimilative
Lcrit = R  (cmax - cnat) 3. WFgrey > R
capacity of the
environment

34. Coherence in water footprint accounts
• WF product = sum of the water footprints of the process steps taken to
produce the product.
• WF consumer = sum of the water footprints of all products consumed by
the consumer.
• WF community = sum of the water footprints of its members.
• WF national consumption = sum of the water footprints of its inhabitants.
• WF business = sum of the water footprints of the final products that the
business produces.
• WF within a geographically delineated area = sum of the process water
footprints of all processes taking place in the area.

35. Unit of a water footprint
• WF of a product: water volume per product unit. Examples:
o water volume per unit of mass
o water volume per unit of money
o water volume per unit of energy (food products, fuels)

36. Green, blue, grey, so what?
Egyptian Wheat: Australian Wheat:
Total water: 930m3/ton Total water: 1588m3/ton
Green water: 0% Green water: 99%
Blue water: 100% Blue water: 1%

37. So what beer? SABMiller
SABMiller Water Futures 2009

38. Mining Impacts on Water

39. Type of water used
Green water footprint
► volume of rainwater evaporated or incorporated into product.
Blue water footprint
► volume of surface or groundwater evaporated,
incorporated into product or returned to another catchment or the sea.
Grey water footprint
► volume of polluted water.

40. Water & Mining issues
Mining has an impact upon:
• Water quantity
• Water quality
These factors will both affect the water footprint of a mining
operation.

41. Water Quantity issues
Factors that would affect the water footprint of a mineral output:
• Climatic conditions (e.g. temperature, humidity > affect evaporation rates)
• Primary water source: surface water, ground water or saline water.
• Ore mineralogy and geochemistry (>affects processing)
• Tailings and overburden management (>affects water management).
• Type of commodity (e.g. uranium requires extensive dust suppression).
• The extent of reuse and recycling
• Mine site water management regime (e.g. allowable discharges; treatment)
• Surrounding communities‟ land uses, and/or industries.
• Project design and configuration (type of mining, beneficiation, closure,
etc).
• The initial moisture content of the ore and waste rock.
• Whether the mine is above or below the water table.
• Surrounding hydrogeological conditions (e.g. high permeability aquifers;
artesian groundwater depressuration issues).

42. Water Quality issues
Water quality impacts of mining operations:
• Acid Rock Drainage (ARD).
• Neutral mine drainage (NMD) or Saline Drainage (SD)
• Heavy metal contamination and leaching
• Processing chemicals pollution
• Erosion and sedimentation.

43. Mining & Water Risk
• Extractive companies undertake significant operations in the
location of the resource (extraction, treatment, & often
processing.)
• As such, operations only receive water from an individual
catchment or transfer scheme
• There is almost no scope to move operations once
investment has begun without significant financial costs
(water is expensive to move).
• Water risk is therefore bound to local context.
• Surplus water is as much a risk as scarcity for a mining
company.

44. Shared risk
Dimensions of Water Risk
Physical Risks Regulatory Risks Reputational Risks
Company  High reliance on freshwater  Increasing competition with  Concerns of
Risk other users might lead to stakeholders around
 Mines are locationally fixed right curtailment or quality and quantity from
so continual adverse revocation company operations can
conditions cannot be solved cause distribution to
by relocating  Increasing cost for rights,
Location of Water risks
operations or increase
storage, waste treatment, cost of doing business
 Disruptions of operations and discharge
due to extreme weather  Depletion of resource
events  Government may reject may create negative
licenses based on perceptions elsewhere in
stakeholder concern the basin
Basin  Availability of freshwater  Institutional weakness or  Large corporates are
Risk limited as a result of other failure can affect water easy scapegoats for
user requirements quantity or quality basin wide water risk
issues around quality
 Other basin users might  International basins at risk and quantity even if they
pollute water resource if other riparian are not the primary
state(s)have poor contributing party
 Climate change might alter regulations
hydrology of basin and user
 End users may chose
needs  Local companies favoured
not to purchase product
over multi-nationals for
from a particular basin if
licensing and fees
there is high risk

45. This Water Footprint, not That
• Water footprint would be measured in m3/ton of product
• It would vary significantly, between and within ore types.
• It is influenced in large part by the quality of ores.
• Because of the importance of local conditions, the water
footprint of mining varies considerably between sites.
• Operations impact on a mining water footprint
• Mine closure has an impact on a mining water footprint.

46. Water Footprint & Mining
• Water Footprint expands the concept of fresh water consumption:
• Green water
• Grey water
• It helps to talk about “non consumption” (recycled water)
• It creates a shared standard and language for water use.
• Most mines understand their water balance – WF can contribute to
understanding where water is consumed in production and identify where
best to invest in water saving technology or process.
• The WF Assessment helps with understanding the sustainability of water
footprint within the context of the local water resources (impact).
• Mining companies may understand their current water use but may not be
able to plan for future water needs given:
• Expansion of activities
• Climate change.

47. Who is interested in WF?

48. Who is interested in Water Footprints?
1. Policy makers
2. Corporates and businesses
3. Consumers
1 2 3

49. Policy & Water Footprint
Water Footprint has insights for:
• Trade Policy
• Agricultural Policy
• Water Policy
1 2 3

50. Policy: Water Footprint & Food Security
1 2 3 Agricultural Water Footprint of Morocco

51. Policy: WF & Water Allocation
1 2 3 Example: Water Footprint of Biofuels

52. Business & Water Footprints
Businesses face water risk:
• Physical risk
• Reputational risk
• Regulatory risk
• Financial risk
There are opportunities for business
• Supply chain risk management
• Corporate image
Corporate social responsibility
1 2 3

53. Water footprint: What is new for business?
• From operations to supply-chain thinking.
• Shifting focus from water withdrawals to consumptive water use.
• From securing the „right to abstract & emit‟ to assessing the full
range of economic, social and environmental impacts of water use
in space and time.
• From meeting emission standards to managing grey water
footprint.
1 2 3

54. Example Corporate Water Footprint
1 2 3

55. SABMiller Water Footprint
Crop Cultivation Crop Processing Brewing Distribution Consumer
Energy Transport Energy Transport Disposal
Fertiliser/ Energy Transport Recycling
pesticide Crop Imports Packaging
Crop Growth Direct Water Raw Materials
(rainfed/ Use Waste
irrigated) Direct Water
Use
1 2 3

56. SABMiller Water Footprint
1 2 3

57. SABMiller Water Footprint
“Each of these countries are facing different water related
issues, are at different levels of economic development,
use land in different ways and are experiencing different
climatic challenges.” (SABMiller Water Futures)
1 2 3

58. SABMiller Water Footprint

59. SABMiller 5 R‟s
• Influence farmers in responsible water use
• Understand the watersheds where there are breweries &
P(r)otect bottling plants.
• Where appropriate, replenish water resources through
rainwater harvesting and groundwater recharge
• Employ new processes and change behaviour to
Reduce, Reuse & reduce water consumption within plants.
• Collect & re-use waste water within facilities where
Recycle appropriate.
• Investigate and employ new technologies to recycle.
• Provide local communities with clean water through
community investment programmes
Redistribute • Treat waste water so it can be used for irrigation or
other purposes.
1 2 3

60. Consumers & Water Footprint
11 22 33

61. Consumers & Water Footprint
Protest at the proposed $4.8 billion
Conga gold mine (Peru, 25 November
2011)
Fears that the mine would hurt nearby
water supplies, the mine would cause
pollution and alter sources of
irrigation water.
1 2 3

62. Water & Mining South Africa

63. Water & Mining South Africa
Source: Greenpeace, True Cost of Coal in South Africa, 2011

64. Water & Mining South Africa
Source: WWF-SA Coal and Water Futures, 2011

65. Water footprint sustainability
assessment &
Water footprint response

66. Water Footprint Response
Step 1 Step 2 Step 3
Avoid the water Water footprint Water footprint
footprint reduction offsetting

67. Avoid, Reduce & Offset
Avoid: do not undertake water-using activities if reasonable
alternatives are available.
Reduce: undertake what is reasonably possible to reduce the existing
water footprint.
Offset: compensate the residual water footprint by making a
reasonable investment (payments or in-kind contributions) in
establishing or supporting projects that aim at a sustainable,
equitable and efficient use of water in the catchment where the
residual water footprint is located.

68. Role of Technology
 Preventing water use
 redesign of process – e.g. dry sanitation, dry cleaning
 Water saving technology
 innovative devices in households and industries
 water-saving irrigation techniques along the whole supply chain
(storage – distribution – application)
 water reuse
 Desalination
 Pollution prevention
 recycling chemicals and materials
 wastewater treatment

69. Reporting
• Shared terminology & calculation standards
• Product transparency
– water footprint reporting / disclosure
– labelling of products
– certification of businesses
• Quantitative footprint reduction targets
– benchmarking

70. Investor Perspectives
Reduce water risk of investments:
• physical risk formed by water shortages or pollution.
• risk of damaged corporate image
• regulatory risk
• financial risk
There will be increased demand for accounting and substantiated
quantitative water footprint reduction targets from companies.
[Morrison et al., 2009; Pegram et al, 2009; Hoekstra et al., 2009]

71. Government Perspective
 Water footprint analysis is becoming embedded in national water
policy making.
 It promotes coherence between water and other governmental
policies: environmental, agricultural, energy, trade, foreign policy.
 Future requirements for product transparency - annual water footprint
accounts and implementation of water footprint reduction measures.
 e.g. through promoting a water label for water-intensive
products;
 e.g. through water-certification of businesses.

72. Government Perspective
Water use efficiency at different levels:
Level Means
User level Create incentives to the water user:
water pricing, promoting technology,
Local water use efficiency awareness raising
River basin level Allocate water where its value
added is highest
Water allocation efficiency
Global level Virtual water trade from water-
abundant to water-scarce regions
Global water use efficiency
Key question: how to develop a coherent set of actions at different spatial
levels to solve local water problems?

74. Thank You
Kate Laing
Pegasys Strategy & Development
Email: kate@pegasys.co.za
Twitter: @kate_laing
www.waterfootprint.org