Very interesting slides on Water Footprinting and Mining in South Africa

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

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. 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.
Globalization of Water

6. • 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.
The Water Footprint of a product

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

17. [Hoekstra & Chapagain, 2008]

18. [Hoekstra & Chapagain, 2008]

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

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

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

22. Dilution water footprint
Million m3
/yr
409
Mm3
/yr
310
Mm3
/yr
92
Mm3
/yr
102
Mm3
/yr
635
Mm3
/yr
83
Mm3
/yr
398
Mm3
/yr
697
Mm3
/yr
EU25's impact on global water resources due to pollution
Water footprint of EU‟s cotton consumption
Grey Water
[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
[Photo: WWF]
Endangered Indus River Dolphin

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

26. WF vs Life Cycle Assessment
Water footprint
• measures freshwater
appropriation
• multi-dimensional (type of
water use, location, timing)
• actual water volumes, no
weighing.
LCA
• measures overall
environmental impact
• no spatial dimension
• weighing water volumes
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
Runoff from
catchmentGround- and surface waterSoil and vegetation
Precipitation
Non
production-related
evapotranspiration
Production-related
evapotranspiration
Abstraction Return flow
Production-related
evapotranspiration
Water contained
in products
Water transfer to
other catchment
Runoff at
field level
Green water footprint Blue water footprint
Catchment area
Water contained
in products
[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. 3. WFgrey > R
Pollution exceeding
the assimilative
capacity of the
environment
1. WFgrey < R
Assimilative capacity
not fully used
2. WFgrey = R
Full assimilative
capacity of the river
used
Critical
load
L1 L2 L3
Level of
pollution
L (kg)
Grey water footprint in a catchment
Critical load is when assimilation
capacity is fully consumed
Lcrit = R  (cmax - cnat)

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:
Total water: 930m3/ton
Green water: 0%
Blue water: 100%
Australian Wheat:
Total water: 1588m3/ton
Green water: 99%
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
LocationofWaterrisks
Physical Risks Regulatory Risks Reputational Risks
Company
Risk
 High reliance on freshwater
 Mines are locationally fixed
so continual adverse
conditions cannot be solved
by relocating
 Disruptions of operations
due to extreme weather
events
 Increasing competition with
other users might lead to
right curtailment or
revocation
 Increasing cost for rights,
storage, waste treatment,
and discharge
 Government may reject
licenses based on
stakeholder concern
 Concerns of
stakeholders around
quality and quantity from
company operations can
cause distribution to
operations or increase
cost of doing business
 Depletion of resource
may create negative
perceptions elsewhere in
the basin
Basin
Risk
 Availability of freshwater
limited as a result of other
user requirements
 Other basin users might
pollute water resource
 Climate change might alter
hydrology of basin and user
needs
 Institutional weakness or
failure can affect water
quantity or quality
 International basins at risk
if other riparian
state(s)have poor
regulations
 Local companies favoured
over multi-nationals for
licensing and fees
 Large corporates are
easy scapegoats for
basin wide water risk
issues around quality
and quantity even if they
are not the primary
contributing party
 End users may chose
not to purchase product
from a particular basin if
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
Agricultural Water Footprint of Morocco1 2 3

51. Policy: WF & Water Allocation
Example: Water Footprint of Biofuels1 2 3

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. • 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.
Water footprint: What is new for business?
1 2 3

54. Example Corporate Water Footprint
1 2 3

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

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

60. Consumers & Water Footprint
1 2 31 2 3

61. Consumers & Water Footprint
1 2 3
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.

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
Water footprint
reduction
Avoid the water
footprint
Water footprint
offsetting
Step 1 Step 2 Step 3

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

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