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<strong>Rio</strong> <strong>Tinto</strong><br />
<strong>and</strong> <strong>water</strong><br />
B
About <strong>Rio</strong> <strong>Tinto</strong><br />
<strong>Rio</strong> <strong>Tinto</strong> is a leading global mining group,<br />
combining <strong>Rio</strong> <strong>Tinto</strong> plc, a public company<br />
listed on the London Stock Exchange, <strong>and</strong><br />
<strong>Rio</strong> <strong>Tinto</strong> Limited, which is listed on the<br />
Australian Securities Exchange.<br />
We are involved in every stage of the<br />
mining business. Products include<br />
aluminium, copper, iron ore, coal <strong>and</strong><br />
uranium. Activities span the world but<br />
are concentrated in Australia <strong>and</strong><br />
North America.<br />
Wherever we operate, the health <strong>and</strong> safety<br />
of our employees, <strong>and</strong> a contribution<br />
to sustainable development are key values.<br />
We work closely with host countries <strong>and</strong><br />
communities, respecting their laws <strong>and</strong><br />
customs <strong>and</strong> ensuring a fair share of<br />
benefits <strong>and</strong> opportunities.<br />
<strong>Rio</strong> <strong>Tinto</strong> <strong>and</strong> sustainable development<br />
Mining is a long term, capital intensive business, with assets<br />
often situated in remote locations. The extended timescale means<br />
that if <strong>Rio</strong> <strong>Tinto</strong> is to deliver financial returns to shareholders,<br />
host governments <strong>and</strong> local communities, we need economic,<br />
environmental <strong>and</strong> social stability.<br />
<strong>Rio</strong> <strong>Tinto</strong> is committed to sustainable development not just because it<br />
is the responsible <strong>and</strong> ethical approach to managing the earth’s natural<br />
resources, but also because it makes sound business sense.<br />
Our business success is built on access to l<strong>and</strong>, people <strong>and</strong> capital.<br />
<strong>Rio</strong> <strong>Tinto</strong> believes we can help ensure access by building a strong <strong>and</strong><br />
deserved reputation through our care for the environment, our social<br />
policies <strong>and</strong> our contribution to economic prosperity. The concept<br />
of sustainable development is integrated into all aspects of <strong>Rio</strong> <strong>Tinto</strong>’s<br />
business through our corporate <strong>and</strong> operational policies, st<strong>and</strong>ards,<br />
strategies, programmes <strong>and</strong> performance indicators.<br />
C
Contents<br />
02 Message from the chief executive<br />
03 Introduction<br />
04 The importance of <strong>water</strong><br />
05 The <strong>Rio</strong> <strong>Tinto</strong> <strong>water</strong> strategy<br />
06 Water use<br />
08 Improving our performance<br />
18 Underst<strong>and</strong>ing the value of <strong>water</strong><br />
22 Engaging with others<br />
28 Future challenges
Message from the chief executive<br />
For more than a decade we at<br />
<strong>Rio</strong> <strong>Tinto</strong> have sought to improve<br />
our <strong>water</strong> performance <strong>and</strong> to be<br />
a responsible <strong>water</strong> manager. This<br />
booklet shares our approach to <strong>water</strong><br />
management, details our progress<br />
<strong>and</strong> describes some of the challenges<br />
that we are currently tackling.<br />
Many parts of the world are experiencing <strong>water</strong> supply<br />
<strong>and</strong> quality difficulties with serious consequences<br />
for the environment, communities, industries <strong>and</strong><br />
governments. There is increasing concern at the<br />
international, national <strong>and</strong> local level as people begin<br />
to recognise the inherent value of <strong>water</strong>.<br />
Companies, including <strong>Rio</strong> <strong>Tinto</strong>, cannot afford to regard<br />
<strong>water</strong> as an inexpensive commodity; rather it is a shared<br />
resource <strong>and</strong> we must collaborate to ensure society uses<br />
it to the greatest benefit.<br />
In the past, we focused on managing the operational<br />
impacts of our <strong>water</strong> use on the environment. Since<br />
2005, we have adopted a more strategic approach that<br />
accounts for the social, environmental <strong>and</strong> economic<br />
aspects of <strong>water</strong> management.<br />
Such an approach requires us to research <strong>and</strong> adopt the<br />
best <strong>water</strong> management practices, to engage with others<br />
on sustainable <strong>water</strong> management, <strong>and</strong> to underst<strong>and</strong><br />
better the value of <strong>water</strong> in our business decisions.<br />
Tough economic times reinforce the need to recognise<br />
there is a cost to using <strong>water</strong>. Beyond the broader social<br />
<strong>and</strong> environmental benefits of conserving our <strong>water</strong><br />
resources, it makes good business sense not to waste<br />
<strong>water</strong> <strong>and</strong> to reduce our <strong>water</strong> use.<br />
Over the past ten years we have improved our <strong>water</strong><br />
management <strong>and</strong> have adopted innovative approaches<br />
to conserving <strong>water</strong> resources. At the same time,<br />
we have recognised that our approach to <strong>water</strong><br />
management must take into consideration issues such<br />
as energy, climate change <strong>and</strong> biodiversity.<br />
While we have made progress in the way we manage<br />
<strong>water</strong>, many challenges remain. Nevertheless, by<br />
continuing to work with others – both internally <strong>and</strong><br />
externally – we believe that we can responsibly manage<br />
this vital resource in a way that meets current <strong>and</strong><br />
future needs.<br />
Tom Albanese<br />
Chief executive, <strong>Rio</strong> <strong>Tinto</strong><br />
2
Introduction<br />
Water is used in the coal washing plant at the Hail Creek Mine, Queensl<strong>and</strong>, Australia, to separate coarse coal <strong>and</strong> rock from smaller particles.<br />
Water is an increasingly scarce <strong>and</strong> valued resource across the<br />
globe. Governments, communities <strong>and</strong> industries are experiencing<br />
unprecedented concern as a result of increasing dem<strong>and</strong> from<br />
fast growing populations, unsustainable <strong>water</strong> practices <strong>and</strong> persistent<br />
droughts. Climate change is expected to place more pressure on<br />
available <strong>water</strong> resources, with some regions predicted to become<br />
much drier <strong>and</strong> other regions wetter.<br />
All <strong>Rio</strong> <strong>Tinto</strong> businesses need <strong>water</strong> to operate. We<br />
use <strong>water</strong> to process ore, to manage waste, <strong>and</strong> to<br />
suppress the dust created by mining. Water is essential<br />
to producing metal <strong>and</strong> power, to cooling equipment,<br />
<strong>and</strong> for the everyday needs of employees <strong>and</strong> their<br />
families. As well as using <strong>water</strong>, it is sometimes<br />
necessary to remove it or change the way it flows<br />
around our operations in order to maintain a safe<br />
<strong>and</strong> stable working environment.<br />
This booklet provides information about <strong>Rio</strong> <strong>Tinto</strong>’s<br />
<strong>water</strong> strategy <strong>and</strong> the programmes <strong>and</strong> tools that<br />
our businesses have implemented to help manage<br />
<strong>water</strong> responsibly.<br />
3
The importance of <strong>water</strong><br />
The <strong>Rio</strong> <strong>Tinto</strong> <strong>water</strong><br />
strategy provides direction<br />
for our businesses <strong>and</strong><br />
encourages long term<br />
thinking about <strong>water</strong> use<br />
while promoting better<br />
performance.<br />
Water sprayers help small ore particles move through a screen in<br />
a grinding mill at the Northparkes Mine, New South Wales, Australia.<br />
Water – a social, environmental<br />
<strong>and</strong> economic resource<br />
Water can have social, environmental <strong>and</strong><br />
economic values. Communities need clean <strong>water</strong><br />
for drinking <strong>and</strong> sanitation but, in many countries,<br />
<strong>water</strong> is either contaminated or insufficient to<br />
meet communities’ needs.<br />
The OECD Environmental Outlook predicts that by<br />
2030, about 47 per cent of the world’s population will<br />
be living under severe <strong>water</strong> stress — approximately<br />
3.9 billion people.<br />
Increasingly, the world is recognising the importance<br />
of good quality <strong>water</strong> for environmental flows <strong>and</strong><br />
the value of <strong>water</strong> as an ecosystem service. Ecosystem<br />
services are the benefits we gain from the environment<br />
through the provision of fresh<strong>water</strong>, food, timber,<br />
climate regulation, erosion control, <strong>and</strong> pharmaceutical<br />
ingredients. Adequate supplies of <strong>water</strong> are vital to<br />
support many of these services.<br />
Economies are vulnerable to <strong>water</strong> shortages. Water<br />
shortages are a serious problem for <strong>water</strong> dependent<br />
industries; the most obvious example being agricultural<br />
production which declines during a drought.<br />
Underst<strong>and</strong>ably, <strong>water</strong> is allocated to people first <strong>and</strong><br />
industry’s needs come last. In addition, the cost of<br />
<strong>water</strong> is rising as a result of <strong>water</strong> scarcity <strong>and</strong> as new<br />
infrastructure is built. Companies face increasing<br />
scrutiny of their <strong>water</strong> management <strong>and</strong> <strong>water</strong> use. For<br />
example, financial institutions are beginning to assess<br />
the risk of <strong>water</strong> scarcity <strong>and</strong> the potential threat it<br />
poses to production or new investment.<br />
The importance of <strong>water</strong><br />
for <strong>Rio</strong> <strong>Tinto</strong><br />
Access to <strong>water</strong> is critical to <strong>Rio</strong> <strong>Tinto</strong>’s operations.<br />
<strong>Rio</strong> <strong>Tinto</strong> owns <strong>and</strong> manages more than<br />
110 operations around the world, located in six<br />
geographical regions across seven different<br />
climate zones.<br />
Each <strong>Rio</strong> <strong>Tinto</strong> operation has its own set of <strong>water</strong><br />
challenges. Some are located in <strong>water</strong> scarce<br />
environments, where increasingly they compete with<br />
other <strong>water</strong> users, while others need to manage surplus<br />
<strong>water</strong> resulting from storms or ground<strong>water</strong>.<br />
An example is <strong>Rio</strong> <strong>Tinto</strong> Alcan’s operations in<br />
Gladstone, Queensl<strong>and</strong>, Australia, which faced a 50 per<br />
cent cut in their 2002-03 <strong>water</strong> allocation, before rain<br />
replenished supplies. On the other h<strong>and</strong>, <strong>Rio</strong> <strong>Tinto</strong> Iron<br />
Ore operations in the Pilbara, Western Australia has lost<br />
production as a result of flooding due to cyclones.<br />
Water quality concerns can also affect production or<br />
increase operating costs. An example is Kennecott Utah<br />
Copper in the United States where <strong>Rio</strong> <strong>Tinto</strong>, as the<br />
current owners, must manage historical ground<strong>water</strong><br />
contamination, a legacy of past mining practices.<br />
4
<strong>Rio</strong> <strong>Tinto</strong>’s <strong>water</strong> strategy<br />
<strong>Rio</strong> <strong>Tinto</strong> takes a strategic approach to managing<br />
<strong>water</strong> that incorporates social, environmental<br />
<strong>and</strong> economic aspects.<br />
Our <strong>water</strong> strategy was developed in 2005, following<br />
internal <strong>and</strong> external consultation, <strong>and</strong> aims to manage<br />
long term risks <strong>and</strong> opportunities.<br />
In the past, many <strong>Rio</strong> <strong>Tinto</strong> operations managed<br />
<strong>water</strong> as an environmental issue, not as a significant<br />
business asset with an economic value. The total<br />
value of <strong>water</strong> was often not appreciated until <strong>water</strong><br />
was no longer available, or the operation was unable<br />
to discharge surplus <strong>water</strong>, or <strong>water</strong> had become a<br />
community concern. Water management was generally<br />
ad hoc <strong>and</strong> fragmented, often with inadequate long<br />
term planning.<br />
The <strong>Rio</strong> <strong>Tinto</strong> <strong>water</strong> strategy provides direction for<br />
our businesses <strong>and</strong> encourages long term thinking<br />
about <strong>water</strong> use, while promoting better performance.<br />
The strategy’s three key elements are:<br />
• Improving <strong>water</strong> performance.<br />
• Accounting for the value of <strong>water</strong>.<br />
• Engaging with others on sustainable<br />
<strong>water</strong> management.<br />
The <strong>water</strong> strategy supports <strong>Rio</strong> <strong>Tinto</strong>'s environmental<br />
<strong>and</strong> sustainable development policies. As <strong>Rio</strong> <strong>Tinto</strong><br />
businesses have different concerns <strong>and</strong> challenges<br />
regarding <strong>water</strong>, each implements the strategy in its<br />
own way. Water is also closely linked to how we manage<br />
other resources <strong>and</strong> issues such as energy, climate<br />
change <strong>and</strong> biodiversity.<br />
Measures to improve <strong>water</strong> management can have<br />
unintended impacts — for example, piping <strong>water</strong> to<br />
share between mines may help with <strong>water</strong> efficiency<br />
but can also significantly increase energy use.<br />
<strong>Rio</strong> <strong>Tinto</strong> strategies, such as those for climate change<br />
<strong>and</strong> biodiversity, help us to underst<strong>and</strong> the complex<br />
interrelationships <strong>and</strong> trade offs in managing<br />
environmental resources.<br />
Water strategy<br />
Water strategy framework<br />
Programmes Objectives<br />
Improve Value Engage<br />
Improving <strong>water</strong><br />
performance<br />
• Water st<strong>and</strong>ard<br />
• Water target<br />
• Water risk review<br />
• Climate change<br />
• Closure<br />
Accounting for<br />
the value of <strong>water</strong><br />
• Framework for<br />
social, environmental<br />
<strong>and</strong> economic value<br />
of <strong>water</strong><br />
• Ecosystem services<br />
Engaging with<br />
others on <strong>water</strong><br />
• Government<br />
<strong>water</strong> policy<br />
• Partnerships<br />
• Internal collaboration<br />
• Community <strong>and</strong> <strong>water</strong><br />
Outcomes<br />
• Reduced operating<br />
costs<br />
• Reduced social <strong>and</strong><br />
environmental impact<br />
• Water understood as<br />
key business resource<br />
• Non-financial aspects<br />
of <strong>water</strong> incorporated<br />
into business<br />
decisions<br />
• Recognition as<br />
leaders in <strong>water</strong><br />
management<br />
• Reliable access to<br />
affordable <strong>water</strong><br />
5
Water use<br />
Water trucks spray roads on the mine site to reduce dust levels at the Blair Athol Mine, Queensl<strong>and</strong>, Australia.<br />
How does <strong>Rio</strong> <strong>Tinto</strong> use <strong>water</strong><br />
Water is used at every stage of our business;<br />
for exploration, mining, processing, smelting<br />
<strong>and</strong> refining.<br />
Water is needed to process <strong>and</strong> mine ore, produce metal<br />
<strong>and</strong> power, cool equipment, manage waste tailings,<br />
suppress dust, for washing <strong>and</strong> drinking <strong>and</strong> to supply<br />
communities. While the minerals <strong>and</strong> metals industry<br />
is a small user of <strong>water</strong> on a global <strong>and</strong> national scale,<br />
it can be the largest user at a local level.<br />
We use <strong>water</strong> from different sources <strong>and</strong> of<br />
different qualities, such as ground<strong>water</strong> (<strong>water</strong> sourced<br />
from aquifers), surface <strong>water</strong> (<strong>water</strong> sourced from rivers,<br />
lakes, rain <strong>and</strong> snow), sea <strong>water</strong> or <strong>water</strong> from dams<br />
that we build on site. In addition, some of our <strong>water</strong><br />
is recycled — approximately 17 per cent across the<br />
<strong>Rio</strong> <strong>Tinto</strong> Group, with some sites recycling up to<br />
70 per cent — as well as sourced from external recycling<br />
<strong>and</strong> treatment plants. At many sites, we replace high<br />
quality (potable) <strong>water</strong> with poorer quality <strong>water</strong><br />
to help conserve local <strong>water</strong> supplies.<br />
Many of <strong>Rio</strong> <strong>Tinto</strong>’s operations are located in arid<br />
areas where <strong>water</strong> is limited <strong>and</strong> the local supply<br />
may be poor quality. Often <strong>Rio</strong> <strong>Tinto</strong> builds major<br />
infrastructure to supply <strong>water</strong> to the site. Operations<br />
can also be located where there is a <strong>water</strong> surplus<br />
<strong>and</strong> careful management is required to enable safe<br />
operations, as well as to minimise impacts when<br />
releasing the <strong>water</strong> back into the environment.<br />
Water returned to the environment after contact<br />
with mining or processing activities has a potential<br />
environmental <strong>and</strong> social impact because its quality<br />
may have been altered. Any <strong>water</strong> discharged from<br />
our operations must accord with <strong>water</strong> quality<br />
compliance limits.<br />
6
Water is needed to process <strong>and</strong><br />
mine ore, produce metal <strong>and</strong> power,<br />
cool equipment, manage waste tailings,<br />
suppress dust, for washing <strong>and</strong><br />
drinking <strong>and</strong> to supply communities.<br />
Water use<br />
Watering at the Rössing Foundation’s pensioner gardens in<br />
Namibia, Africa. Produce is available for the pensioners’ own use,<br />
with any surplus being sold locally.<br />
<strong>Rio</strong> <strong>Tinto</strong> <strong>water</strong> inputs <strong>and</strong> outputs 2008<br />
Diverted <strong>water</strong> used for generation of hydroelectric power 152,750 GL<br />
<strong>water</strong> input = 154,551 GL<br />
Diverted <strong>water</strong> around mining <strong>and</strong> processing sites 121 GL<br />
Water withdrawn 1<br />
1,236 GL<br />
Water in ore<br />
that is processed<br />
428 GL<br />
Imported<br />
recycled <strong>water</strong><br />
15.6 GL<br />
Water use on site<br />
• Process <strong>water</strong> 1,433 GL 3<br />
• Recycled <strong>water</strong> 244 GL 4<br />
• Change in storage during year 2 GL 5<br />
Water return 2<br />
153,850 GL<br />
Evaporation<br />
<strong>and</strong> seepage<br />
596 GL<br />
Entrained in product<br />
or process waste<br />
98 GL<br />
Sent to third parties<br />
4.5 GL<br />
<strong>water</strong> output = 154,549 GL<br />
Water supplied directly to others<br />
45 GL<br />
Town supply, export<br />
or pastoral use<br />
45 GL<br />
Water input Water output Water supplied Water use<br />
1 Including onsite impounded/imported surface, onsite/imported ground <strong>water</strong> (including de<strong>water</strong>ing) <strong>and</strong> marine <strong>water</strong>.<br />
2 Including process effluent, de<strong>water</strong>ing <strong>water</strong> discharged without use <strong>and</strong> non process <strong>water</strong>.<br />
3 Including mining (de<strong>water</strong>ing), milling, washing, power generation, dust suppression etc.<br />
4 Tailings, sewage or <strong>water</strong> contaminated in process that has been treated for re-use.<br />
5 The difference between total <strong>water</strong> input <strong>and</strong> total <strong>water</strong> output is 'change in storage'.<br />
1 GL = 1 gigalitre of <strong>water</strong> (1 billion litres)<br />
7
Water canons spray the raw coal stock pile at Coal & Allied's Bengalla mine, New South Wales, Australia, in order to reduce dust.<br />
Improving our performance<br />
<strong>Rio</strong> <strong>Tinto</strong> operations need to<br />
continually improve their <strong>water</strong><br />
management in order to be good<br />
neighbours, to reduce operational<br />
constraints <strong>and</strong> to demonstrate<br />
why <strong>Rio</strong> <strong>Tinto</strong> should be the<br />
developer of choice for new<br />
orebodies. Operations that reduce<br />
their dem<strong>and</strong> through efficiency,<br />
technology <strong>and</strong> the use of lower<br />
quality <strong>and</strong> recycled <strong>water</strong> are<br />
more likely to have a competitive,<br />
economic <strong>and</strong> reputational<br />
advantage.<br />
We have developed a number of<br />
programmes to help achieve improved<br />
performance, including:<br />
• A <strong>water</strong> st<strong>and</strong>ard that sets the<br />
minimum expectations for each<br />
operation when managing <strong>water</strong>.<br />
• A <strong>water</strong> target for all operations<br />
that aims to improve the efficiency<br />
of fresh <strong>water</strong> use.<br />
• A <strong>water</strong> risk review that assesses<br />
risk <strong>and</strong> opportunities <strong>and</strong> provides<br />
a holistic approach to <strong>water</strong><br />
management at an operation.<br />
8
<strong>Rio</strong> <strong>Tinto</strong> <strong>water</strong> use <strong>and</strong> quality<br />
control st<strong>and</strong>ard<br />
The <strong>water</strong> st<strong>and</strong>ard was developed in 2003<br />
<strong>and</strong> sets down <strong>Rio</strong> <strong>Tinto</strong>’s minimum expectations<br />
for <strong>water</strong> management. It applies to all <strong>Rio</strong> <strong>Tinto</strong><br />
operations — from the exploration stage right through<br />
to closure — as part of a series of environmental<br />
st<strong>and</strong>ards that help deliver consistent performance<br />
wherever we operate. To meet the <strong>water</strong> st<strong>and</strong>ard,<br />
each operation is required to have:<br />
• A <strong>water</strong> balance <strong>and</strong> <strong>water</strong> management plan that help<br />
to plan for all <strong>water</strong> needs <strong>and</strong> challenges.<br />
• Skilled <strong>water</strong> personnel who underst<strong>and</strong> how to assess<br />
<strong>water</strong> risk, manage <strong>water</strong> in their operations <strong>and</strong> engage<br />
with the community.<br />
• Appropriately designed <strong>water</strong> infrastructure,<br />
such as <strong>water</strong> storages <strong>and</strong> borefields, that reflect<br />
leading practice.<br />
Operations are audited against the st<strong>and</strong>ard every<br />
two years. Audit results show that while some<br />
operations are meeting the st<strong>and</strong>ard, others are still<br />
working to improve their <strong>water</strong> balances <strong>and</strong> <strong>water</strong><br />
management plans.<br />
A <strong>water</strong> balance accounts for an operation’s <strong>water</strong><br />
inputs, the flows of <strong>water</strong> within the operation <strong>and</strong> then<br />
all <strong>water</strong> outputs. A <strong>water</strong> balance allows an operation<br />
to underst<strong>and</strong> what its <strong>water</strong> consumption <strong>and</strong><br />
discharge requirements are so that it can predict the<br />
amount of <strong>water</strong> needed compared to what is available<br />
or stored on site. It also distinguishes between different<br />
quality <strong>water</strong>s, such as fresh<strong>water</strong> or recycled <strong>water</strong>.<br />
<strong>Rio</strong> <strong>Tinto</strong> Group <strong>water</strong> target<br />
<strong>Rio</strong> <strong>Tinto</strong> set a five year efficiency target in 2003<br />
that called for a ten per cent reduction per tonne of<br />
product in fresh<strong>water</strong> withdrawn from the environment.<br />
The target was based on the combined performance<br />
of individual operations.<br />
At the end of the target period, we achieved a<br />
6.3 per cent reduction in fresh <strong>water</strong> withdrawal<br />
per tonne of product (excluding former Alcan<br />
operations). Efficiencies were mainly achieved through<br />
production increases — more product was produced<br />
for the same volume of <strong>water</strong> — with <strong>water</strong> recycling<br />
activities at several operations also contributing.<br />
However, improvements were offset by climatic events,<br />
particularly in Australia. Heavy rain led to flooding<br />
<strong>and</strong> the need for additional pit de<strong>water</strong>ing, or a<br />
requirement to impound <strong>water</strong> for treatment before<br />
use or release to the environment. Increased mining<br />
below the <strong>water</strong> table as part of expansion activities<br />
also required additional de<strong>water</strong>ing, particularly<br />
at some operations in Western Australia.<br />
A new <strong>water</strong> efficiency target is currently being<br />
developed for the five year period from 2010 to 2014.<br />
While many businesses have found a <strong>water</strong> target<br />
challenging to reach, it has helped drive <strong>water</strong> efficiency<br />
actions at operations, raise the priority of <strong>water</strong> <strong>and</strong><br />
develop better data collection systems, baselines<br />
<strong>and</strong> projections.<br />
Improving our performance<br />
A <strong>water</strong> management plan describes the overall<br />
objective <strong>and</strong> vision for <strong>water</strong> management at the<br />
operation level: regulatory conditions <strong>and</strong> reporting<br />
requirements, what actions need to be taken <strong>and</strong> why,<br />
who is responsible, <strong>and</strong> who needs to be consulted or<br />
advised of any proposed changes. Plans must be updated<br />
every four years or during major expansions or upgrades<br />
to take account of any changes to <strong>water</strong> management.<br />
% reduction per tonne of product<br />
<strong>Rio</strong> <strong>Tinto</strong> Group <strong>water</strong> target<br />
Actual <strong>and</strong> target<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
-5%<br />
2003 2004 2005 2006 2007 2008<br />
<strong>Rio</strong> <strong>Tinto</strong> results<br />
2008 Target<br />
9
Improving our performance<br />
Water risk review<br />
One of the main tools <strong>Rio</strong> <strong>Tinto</strong> has developed to<br />
help operations identify risks <strong>and</strong> opportunities for<br />
managing <strong>water</strong> is the <strong>water</strong> risk review. The review<br />
has been undertaken by almost 40 operations since<br />
it was developed in 2005 <strong>and</strong> provides a holistic<br />
approach to site <strong>water</strong> management.<br />
The review assesses an operation’s current <strong>water</strong><br />
performance against a number of <strong>water</strong> management<br />
aspects. These include technical elements, such as <strong>water</strong><br />
balances <strong>and</strong> <strong>water</strong> treatment; management elements,<br />
such as monitoring, measuring <strong>and</strong> stakeholder<br />
engagement; <strong>and</strong> corporate requirements, such<br />
as <strong>water</strong> targets.<br />
The review has led to improvements in performance<br />
through the development, for example, of <strong>water</strong><br />
balances, the appointment of <strong>water</strong> champions <strong>and</strong><br />
<strong>water</strong> teams, as well as providing a focus on improving<br />
<strong>water</strong> management at new projects.<br />
Water risk review<br />
Site <strong>water</strong> balance<br />
Water efficiency, recycling, targets & indicators<br />
Surface <strong>water</strong> management<br />
Ground <strong>water</strong> management<br />
Water resource assurance<br />
Water disposal assurance<br />
The <strong>water</strong> risk<br />
review assesses<br />
the site’s current<br />
<strong>water</strong> management<br />
status across several<br />
dimensions of<br />
<strong>water</strong> management<br />
compared to where<br />
the site wants to be.<br />
The gap provides the<br />
pathway for action<br />
planning.<br />
Water transfer system <strong>and</strong> tanks<br />
Tailings dam, co-disposal <strong>and</strong> <strong>water</strong> dams<br />
Personnel skills <strong>and</strong> accountabilities<br />
Data collection, management, checks & review<br />
Water management planning<br />
Water related closure planning<br />
Partnerships <strong>and</strong> collaboration<br />
Water strategy<br />
Current performance<br />
Performance goal<br />
0 = not addressed<br />
1 = improvemet required<br />
3 = satisfactory<br />
5 = leading performance<br />
0 1 3 5<br />
The data in this graph is for illustrative purposes only <strong>and</strong> does not represent any particular <strong>Rio</strong> <strong>Tinto</strong> operation.<br />
10
Improving our performance<br />
Case study<br />
The dry <strong>and</strong> cracked surface of a tailings dam at Rössing uranium mine, Namibia, Africa. Waste slurry is taken to the tailings dam where the <strong>water</strong> is removed<br />
to be recycled <strong>and</strong> reused in the processing plant.<br />
Rössing Uranium Limited – putting strategy into action<br />
Rössing Uranium<br />
is situated in the<br />
Namib Desert,<br />
Namibia, where the<br />
climate experiences<br />
low <strong>and</strong> erratic rainfall,<br />
soaring temperatures<br />
<strong>and</strong> strong seasonal<br />
winds that cause<br />
high <strong>water</strong> evaporation<br />
rates. The mining<br />
<strong>and</strong> milling process<br />
requires some three<br />
million cubic metres<br />
of <strong>water</strong> each year.<br />
Water is bought from<br />
the Namibian bulk <strong>water</strong><br />
supplier, NamWater,<br />
which sources it from the<br />
Omaruru <strong>and</strong> Kuiseb rivers.<br />
However, exp<strong>and</strong>ing local<br />
communities <strong>and</strong> industry<br />
have placed increasing<br />
pressure on <strong>water</strong> supply.<br />
Rössing recognised it<br />
needed to develop an<br />
underst<strong>and</strong>ing of the<br />
impact of its <strong>water</strong> use on<br />
local systems <strong>and</strong> determine<br />
how its <strong>water</strong> dem<strong>and</strong> could<br />
affect the needs of other<br />
community members.<br />
In 2005, the mine<br />
implemented a formal<br />
<strong>water</strong> strategy that built<br />
on its previous work <strong>and</strong><br />
<strong>water</strong> management plans.<br />
A <strong>water</strong> risk assessment was<br />
carried out with some of<br />
Rössing’s key stakeholders,<br />
which identified further<br />
opportunities for <strong>water</strong><br />
savings <strong>and</strong> improving the<br />
mine’s <strong>water</strong> balance <strong>and</strong><br />
accounting.<br />
Rössing has worked to<br />
reduce its <strong>water</strong> footprint<br />
by implementing <strong>water</strong><br />
recycling at the mine,<br />
extracting <strong>and</strong> reusing<br />
<strong>water</strong> from the tailings<br />
dam, minimising high<br />
evaporative <strong>water</strong> losses,<br />
using alternative lower<br />
quality <strong>water</strong> sources<br />
<strong>and</strong> creating awareness<br />
to conserve <strong>water</strong>. Water<br />
used for cleaning <strong>and</strong><br />
dust suppression in the<br />
processing plant is returned<br />
to the mills or tailings<br />
pumps. Effluent from<br />
workshops is pumped to an<br />
oil separation plant from<br />
where the separated <strong>water</strong><br />
is mixed with semi-purified<br />
sewage effluent <strong>and</strong> re-used<br />
in the mine.<br />
NamWater plans to build<br />
a desalination plant near<br />
Swakopmund in the near<br />
future, where Rössing will<br />
receive <strong>water</strong> as soon as<br />
it is available. However,<br />
in the event that the<br />
continuous recharge of the<br />
Omdel dam sustainably<br />
increases beyond domestic<br />
dem<strong>and</strong>, Rössing would<br />
request supplementary<br />
aquifer supply to cater for<br />
future mining extensions.<br />
Ongoing <strong>water</strong> activities<br />
at Rössing include a study<br />
to determine the true value<br />
of <strong>water</strong> in the local context,<br />
continuing co-operation<br />
with local farmers,<br />
enhancing the <strong>water</strong><br />
recovery systems at the<br />
mine <strong>and</strong> the introduction<br />
of <strong>water</strong> awareness training<br />
for all new employees<br />
<strong>and</strong> contractors.<br />
11
Improving our performance<br />
Water sources<br />
The <strong>water</strong> we use in our operations comes from a variety of sources, including ground<strong>water</strong>, surface <strong>water</strong>, sea<strong>water</strong>,<br />
<strong>water</strong> from dams on site or sourced from <strong>water</strong> treatment plants. About half of our <strong>water</strong> is sea<strong>water</strong> used in the<br />
cooling of power stations. The source <strong>and</strong> quality of the <strong>water</strong> changes from operation to operation. At many sites,<br />
we replace high quality (potable) <strong>water</strong> with poorer quality <strong>water</strong> to help conserve local <strong>water</strong> supplies.<br />
Poor <strong>water</strong> 58%<br />
Fresh <strong>water</strong> 42%<br />
Fresh <strong>water</strong>: 42% Poor <strong>water</strong>: 58%<br />
Imported ground
Improving our performance<br />
Case study<br />
Water floods Highway Number 1 in the Pilbara region of Western Australia, making the road impassable. This section of road connects <strong>Rio</strong> <strong>Tinto</strong> Iron Ore’s<br />
Dampier Ports <strong>and</strong> Cape Lambert Port. Photo by Mervyn Coutinho.<br />
<strong>Rio</strong> <strong>Tinto</strong> Iron Ore – managing <strong>water</strong> across the Pilbara<br />
<strong>Rio</strong> <strong>Tinto</strong> Iron Ore’s<br />
(RTIO) Australian<br />
operations are located<br />
in the Pilbara region<br />
of Western Australia<br />
<strong>and</strong> produce more than<br />
180 million tonnes<br />
of iron ore annually<br />
with a network<br />
of 11 mines, three<br />
shipping terminals<br />
<strong>and</strong> the largest<br />
privately owned heavy<br />
freight rail network<br />
in Australia. The<br />
l<strong>and</strong>scape is arid with<br />
little surface <strong>water</strong><br />
<strong>and</strong> experiences<br />
severe droughts <strong>and</strong><br />
major floods.<br />
The majority of <strong>water</strong> used<br />
in the Pilbara is sourced<br />
from ground<strong>water</strong>, with<br />
some of the West Pilbara<br />
Water Supply Scheme being<br />
sourced from Harding Dam.<br />
Recharge occurs via cyclonic<br />
rainfall events occurring<br />
between November <strong>and</strong><br />
March each year. The<br />
number <strong>and</strong> frequency of<br />
cyclones <strong>and</strong> the amount<br />
of <strong>water</strong> that they bring<br />
varies annually. However,<br />
the Pilbara’s aquifers are<br />
significant, which has<br />
a balancing effect on the<br />
regional <strong>water</strong> resource.<br />
While some of RTIO’s<br />
mining areas rely on<br />
borefields for their supply,<br />
others are below the <strong>water</strong><br />
table <strong>and</strong> require large<br />
volumes of ground<strong>water</strong><br />
to be extracted to access<br />
the orebody. Balancing<br />
the dem<strong>and</strong> <strong>and</strong> surplus<br />
requirements across the<br />
Pilbara presents a number<br />
of <strong>water</strong> challenges<br />
for RTIO.<br />
On the coast, where<br />
RTIO is the largest customer<br />
of the West Pilbara Water<br />
Supply Scheme, security<br />
of supply presents<br />
challenges as dem<strong>and</strong><br />
increases from other<br />
industrial operations, the<br />
growing town of Karratha,<br />
as well as RTIO’s own<br />
port <strong>and</strong> town dem<strong>and</strong>s.<br />
Inl<strong>and</strong>, the operations are<br />
remote <strong>and</strong> third party<br />
dem<strong>and</strong> for <strong>water</strong> is<br />
virtually non-existent,<br />
creating a new set of<br />
challenges around<br />
effective <strong>and</strong> efficient<br />
use <strong>and</strong> management of<br />
<strong>water</strong> resources <strong>and</strong> the<br />
appropriate management<br />
of surplus <strong>water</strong> from<br />
de<strong>water</strong>ing activities.<br />
RTIO has established a<br />
specialist <strong>water</strong> resources<br />
group to oversee <strong>water</strong><br />
management across the<br />
Pilbara region. A <strong>water</strong><br />
management strategy has<br />
been developed to help<br />
underst<strong>and</strong> <strong>and</strong> manage<br />
the risks <strong>and</strong> opportunities<br />
that come with managing<br />
up to 80 gigalitres a year.<br />
The strategy considers<br />
regional, catchment <strong>and</strong> site<br />
specific issues, as well as<br />
the impacts that operations<br />
can have on each other.<br />
The strategy also takes into<br />
account all those in the<br />
region who use <strong>water</strong> <strong>and</strong><br />
how, as well as the seasonal<br />
<strong>and</strong> cultural implications<br />
in each location – including<br />
the cultural <strong>and</strong> heritage<br />
significance of <strong>water</strong> for<br />
Traditional Owners.<br />
13
Improving our performance<br />
In arid environments, <strong>water</strong> loss due to evaporation can present enormous challenges, with evaporation accounting for up to 60 to<br />
70 per cent of lost <strong>water</strong>. <strong>Rio</strong> <strong>Tinto</strong> has developed an innovative <strong>and</strong> practical technology that can reduce <strong>water</strong> evaporation losses by<br />
up to 90 per cent. The floating module sits semi-submerged on the <strong>water</strong>’s surface, preventing evaporation. Covering up to 90 per cent<br />
of a <strong>water</strong> body’s surface – such as a dam or pond – the modules reduce evaporation while still allowing important sunlight penetration<br />
<strong>and</strong> gas exchange within the <strong>water</strong>. The modules were successfully trialled at the Northparkes Mine in New South Wales, Australia.<br />
They are now commercially manufactured by a third party <strong>and</strong> can also be used by farmers <strong>and</strong> communities.<br />
Managing other issues<br />
New projects<br />
<strong>Rio</strong> <strong>Tinto</strong> is working to ensure <strong>water</strong> management<br />
is considered in the early project planning stage,<br />
well before construction begins. All new projects<br />
must conform with the <strong>Rio</strong> <strong>Tinto</strong> <strong>water</strong> st<strong>and</strong>ard <strong>and</strong><br />
underst<strong>and</strong> their <strong>water</strong> consumption <strong>and</strong> discharge<br />
requirements from the very start, ie underst<strong>and</strong> their<br />
<strong>water</strong> balance, as explained on page nine.<br />
Early investigation <strong>and</strong> development of a <strong>water</strong><br />
balance can avoid the over or under design of <strong>water</strong><br />
infrastructure – such as dams, pipelines, pumps – as<br />
well as enable better operational <strong>water</strong> efficiencies.<br />
This can provide large cost savings to a business.<br />
Developing a <strong>water</strong> balance can help investigations<br />
into a new project’s lifetime <strong>water</strong> supply <strong>and</strong> take into<br />
account climate variability or reduced <strong>water</strong> supply.<br />
It can also help to engage stakeholders in <strong>water</strong> related<br />
social <strong>and</strong> community matters.<br />
Water <strong>and</strong> climate change<br />
A key part of <strong>Rio</strong> <strong>Tinto</strong>’s climate change programme<br />
is for operations to reduce greenhouse gas emissions.<br />
<strong>Rio</strong> <strong>Tinto</strong> is implementing programmes that encourage<br />
operations to underst<strong>and</strong> <strong>and</strong> adapt to changes in<br />
climate, such as increased or reduced rainfall. The<br />
impact of climate change brings higher levels of<br />
uncertainty <strong>and</strong> risk to available <strong>water</strong> supplies.<br />
We need to underst<strong>and</strong> how these are affected <strong>and</strong><br />
what the impact will be for our operations <strong>and</strong> nearby<br />
communities. At the site level, the key tool to managing<br />
<strong>water</strong> flows is the <strong>water</strong> balance. We are seeking ways<br />
to incorporate more accurate climatic variations (such<br />
as long term rainfall trends) into site <strong>water</strong> balance<br />
predictions <strong>and</strong> are developing operational guidelines.<br />
This is essential to ensuring an adequate <strong>water</strong><br />
supply for operations <strong>and</strong> projects <strong>and</strong> for designing<br />
appropriate flood control measures.<br />
Water <strong>and</strong> energy<br />
Water <strong>and</strong> energy are intrinsically linked – <strong>water</strong> is<br />
often needed to generate energy <strong>and</strong> energy is used<br />
to supply <strong>and</strong> manage <strong>water</strong>. Energy is a fundamental<br />
part of most operational <strong>water</strong> processes; it enables pit<br />
de<strong>water</strong>ing, tailings flow, <strong>water</strong> treatment, <strong>water</strong> use<br />
<strong>and</strong> recycling, dust suppression <strong>and</strong> desalination.<br />
Water can form the basis of energy processes, such as<br />
hydroelectricity generation <strong>and</strong> is an essential element<br />
in the cooling of power stations. Often improving the<br />
performance in one area can impact on performance<br />
in the other. For example, treating <strong>water</strong> to improve its<br />
quality can require significant amounts of energy.<br />
A business must ensure that improvements to one<br />
aspect do not negatively impact another. <strong>Rio</strong> <strong>Tinto</strong><br />
has set targets for energy, climate change <strong>and</strong> <strong>water</strong><br />
<strong>and</strong> our operations should underst<strong>and</strong> that this<br />
interrelationship is important.<br />
When the mine closes<br />
<strong>Rio</strong> <strong>Tinto</strong> requires all of our operations to have a<br />
closure plan that identifies, characterises <strong>and</strong> mitigates<br />
economic, social <strong>and</strong> environmental risks. If not<br />
managed well, <strong>water</strong> can present significant technical<br />
<strong>and</strong> engineering challenges when an operation closes.<br />
These can include large <strong>and</strong> often long term liabilities,<br />
such as acidic <strong>water</strong> leaking from an old mine <strong>and</strong><br />
polluting nearby rivers.<br />
<strong>Rio</strong> <strong>Tinto</strong> currently manages a number of contamination<br />
issues. One is at Kennecott Utah Copper, which operates<br />
the world’s largest copper mine in Bingham Canyon,<br />
Utah, US. Ground <strong>water</strong> contaminated from more than<br />
100 years of mining (much of it predating <strong>Rio</strong> <strong>Tinto</strong>’s<br />
involvement) is being cleaned up with support from<br />
Kennecott Utah Copper. The business’s commitment<br />
will continue after the mine closes.<br />
14
Improving our performance<br />
Case study<br />
The Flambeau mine during operations in 1996.<br />
The reclaimed Flambeau mine in 2002. The site was rehabilitated<br />
to meet the requests of local communities <strong>and</strong> authorities.<br />
The Flambeau mine – meeting community expectations<br />
The Flambeau mine,<br />
operated by Kennecott<br />
Minerals, was a short<br />
term copper <strong>and</strong><br />
gold mining project,<br />
operating between<br />
1993 <strong>and</strong> 1997.<br />
Located just south of<br />
Ladysmith in northern<br />
Wisconsin in the US,<br />
the mine was less than<br />
45 metres from the<br />
Flambeau river — an<br />
important recreation,<br />
tourism, fishing <strong>and</strong><br />
wildlife habitat resource.<br />
The protection of the<br />
Flambeau was fundamental<br />
to the success of the<br />
project. Operating under<br />
Wisconsin’s stringent<br />
mining laws, the mine<br />
undertook extensive<br />
monitoring of ground<strong>water</strong>,<br />
surface <strong>water</strong>, waste <strong>water</strong>,<br />
nearby wetl<strong>and</strong>s <strong>and</strong><br />
aquatic ecology.<br />
Long term monitoring<br />
both upstream <strong>and</strong><br />
downstream is now proving<br />
the river remains clean<br />
<strong>and</strong> healthy. Testing also<br />
shows ground <strong>water</strong> quality<br />
surrounding the site is<br />
as good as it was before<br />
mining. Monitoring will<br />
continue for 40 years<br />
to ensure future ground<br />
<strong>water</strong> protection.<br />
Upon closing, the mine<br />
site was rehabilitated<br />
to meet the requests of<br />
local communities <strong>and</strong><br />
authorities.<br />
The open pit was backfilled<br />
<strong>and</strong> prairie <strong>and</strong> woodl<strong>and</strong><br />
habitat created, along<br />
with more than ten acres<br />
of wetl<strong>and</strong>s. Hiking <strong>and</strong><br />
equestrian trails have been<br />
created south of the site.<br />
At the request of local<br />
governments, 32 acres of<br />
the site were set aside for<br />
industrial use <strong>and</strong> leased<br />
to the Ladysmith Industrial<br />
Development Corporation.<br />
15
Improving our performance<br />
Case study<br />
The digestion units at <strong>Rio</strong> <strong>Tinto</strong> Alcan’s Yarwun alumina refinery, Queensl<strong>and</strong>, Australia, are based on <strong>water</strong> efficient design. Process <strong>water</strong> <strong>and</strong> heat are stored<br />
in tubes so they are not lost through dissipation.<br />
<strong>Rio</strong> <strong>Tinto</strong> Alcan – planning for potential <strong>water</strong> shortage<br />
During the 2003<br />
drought conditions<br />
experienced in<br />
Gladstone, Australia,<br />
one of the crisis<br />
options considered<br />
by <strong>Rio</strong> <strong>Tinto</strong> Alcan’s<br />
Yarwun alumina<br />
refinery was to retrofit<br />
sea<strong>water</strong> cooling to<br />
the cooling towers,<br />
which consume a<br />
significant proportion<br />
of the operation’s fresh<br />
<strong>water</strong> intake. Sea<strong>water</strong><br />
cooling is generally<br />
more expensive due<br />
to the high capital<br />
requirements for<br />
stainless steel piping<br />
<strong>and</strong> pumps.<br />
While the threat passed<br />
when weather conditions<br />
replenished the local<br />
<strong>water</strong> supply, <strong>Rio</strong> <strong>Tinto</strong><br />
Alcan realised there was<br />
a key lesson to be learnt.<br />
As it was constructing a<br />
new refinery in Gladstone<br />
during the same period,<br />
<strong>Rio</strong> <strong>Tinto</strong> Alcan considered<br />
the prospect of future<br />
droughts <strong>and</strong> the potential<br />
for increasing <strong>water</strong> prices<br />
— making sea<strong>water</strong> cooling<br />
more cost-effective than<br />
the use of fresh <strong>water</strong>.<br />
Sea<strong>water</strong> is used for mixing<br />
with <strong>and</strong> pumping solid<br />
wastes instead of fresh<strong>water</strong><br />
resources.<br />
The decision was made to<br />
modify the design of the<br />
new refinery’s <strong>water</strong> cooling<br />
system — at a relatively low<br />
cost of A$2.5 million — so<br />
that the equipment needed<br />
for sea<strong>water</strong> cooling could<br />
be installed.<br />
This significantly decreases<br />
the lead time required to<br />
make a switch to sea<strong>water</strong><br />
cooling should the need<br />
arise, <strong>and</strong> also ensures that<br />
there are no plant layout<br />
issues associated with such<br />
a retrofit.<br />
The result of installing<br />
the equipment is a refinery<br />
facility that is more<br />
adaptable to changes in<br />
the external environment.<br />
<strong>Rio</strong> <strong>Tinto</strong> Alcan’s<br />
ongoing commitment<br />
to <strong>water</strong> management<br />
is underpinned by the<br />
initiation of Queensl<strong>and</strong>’s<br />
largest <strong>water</strong> recycling<br />
programme. This example<br />
is located at our other<br />
Gladstone refinery,<br />
Queensl<strong>and</strong> Alumina<br />
Limited, which utilises<br />
95 per cent of Gladstone’s<br />
treated sewage effluent<br />
within the refinery process,<br />
instead of fresh <strong>water</strong>.<br />
16
Improving our performance<br />
Case study<br />
Through an innovative approach to acid rock drainage management,<br />
Kennecott Eagle protects ground<strong>water</strong> <strong>and</strong> surface <strong>water</strong> resources including<br />
the Salmon-Trout River, located approximately 775 metres up-gradient of<br />
the mine surface facilities.<br />
Water monitoring wells monitor ground <strong>water</strong> quality <strong>and</strong> elevation<br />
<strong>and</strong> contribute to baseline hydrogeology studies at the Kennecott<br />
Eagle Minerals project in Michigan, US.<br />
Kennecott Eagle Minerals – protecting ground <strong>and</strong> surface <strong>water</strong><br />
The Kennecott Eagle<br />
Minerals project is a<br />
new development in<br />
Marquette County,<br />
northern Michigan,<br />
US. The operation will<br />
mine a rich deposit of<br />
nickel sulphide using<br />
longhole stoping — an<br />
underground mining<br />
technique.<br />
Development rock —<br />
non-ore bearing rock<br />
drawn from underground<br />
as the mine is built —<br />
contains sulphide bearing<br />
minerals. Development<br />
rock needs to be stored<br />
on the surface during the<br />
project’s construction <strong>and</strong><br />
development, before being<br />
used as backfill. As the<br />
development period may<br />
last several years, there is<br />
a risk that ARD may occur.<br />
Additionally, the<br />
development rock will<br />
be mixed with limestone<br />
to neutralize the acid<br />
potential <strong>and</strong> the entire<br />
facility will be covered to<br />
prevent precipitation from<br />
contacting the development<br />
rock — further reducing<br />
the potential for ARD<br />
generation.<br />
All <strong>water</strong> collected from<br />
the temporary development<br />
rock storage area as well<br />
as contact <strong>water</strong> from the<br />
other operational areas<br />
of the mine, including<br />
underground de<strong>water</strong>ing<br />
<strong>water</strong>, will be routed<br />
through a state of the art<br />
on site <strong>water</strong> treatment<br />
plant, which will purify<br />
contact <strong>water</strong> to better<br />
than drinking <strong>water</strong><br />
quality st<strong>and</strong>ards.<br />
Testing <strong>and</strong> monitoring<br />
of the treated <strong>water</strong><br />
will be overseen by the<br />
Michigan Department<br />
of Environmental Quality.<br />
The treated <strong>water</strong> will<br />
be so pure, it will be<br />
stored to avoid contact<br />
<strong>and</strong> contamination from<br />
rain <strong>water</strong>.<br />
The <strong>water</strong> will be returned<br />
to the environment via<br />
a dispersion system that<br />
slowly releases <strong>water</strong> over<br />
a large area to accommodate<br />
effective infiltration back<br />
into the ground.<br />
A significant challenge Management of the ARD<br />
facing the project has risk has become a key<br />
been the potential for priority for the project.<br />
acid rock drainage (ARD). After extensive consultation<br />
ARD occurs when rocks with the local community<br />
By using this system,<br />
containing sulphide to underst<strong>and</strong> their<br />
Kennecott safely <strong>and</strong><br />
minerals or metals are expectations <strong>and</strong> concerns,<br />
effectively manages ARD<br />
exposed to air <strong>and</strong> <strong>water</strong>, Kennecott is adopting a<br />
<strong>and</strong> returns purified <strong>water</strong><br />
<strong>and</strong> over time, produce number of management<br />
collected from the mining<br />
dilute sulphuric acid. This approaches. For example,<br />
operation back into the<br />
can have damaging effects the temporary holding<br />
environment.<br />
on the environment, such area is a specially designed<br />
as lowering the pH <strong>and</strong> double lined facility<br />
increasing the metal, solids with leak detection <strong>and</strong><br />
<strong>and</strong> salt content of <strong>water</strong> collection systems for any<br />
bodies <strong>and</strong> soils, making potential ARD.<br />
the environment<br />
uninhabitable for both<br />
plants <strong>and</strong> animals.<br />
17
Bathurst caribou herds migrate through the Diavik Diamond Mine region twice a year.<br />
Underst<strong>and</strong>ing<br />
the value of <strong>water</strong><br />
Most people appreciate that <strong>water</strong> has a value beyond what<br />
it costs, but <strong>water</strong> valuation is often seen as just a matter<br />
of price. The main way of valuing investment options at<br />
operations is the use of an accounting methodology called<br />
‘net present value’ (NPV).<br />
This methodology calculates the present value of an<br />
investment’s future cash flows, less the cost of the project<br />
itself. However, this methodology generally doesn’t take<br />
into account the non monetary values of <strong>water</strong> — such as<br />
the social <strong>and</strong> environmental values — where cultural or<br />
community amenity could be at stake.<br />
18
The value of <strong>water</strong><br />
The Iron Ore Company of Canada has rehabilitated its tailings to create<br />
wetl<strong>and</strong>s, providing new habitats for native wildlife.<br />
The different values of <strong>water</strong><br />
Society values <strong>water</strong> in different ways. The<br />
cultural value an indigenous community may place<br />
on a <strong>water</strong>body may not match that held by others.<br />
Perceptions of <strong>water</strong> can change as conditions change.<br />
In times of drought, communities, governments <strong>and</strong><br />
business place great importance on <strong>water</strong> conservation.<br />
This concern often diminishes quickly following rains.<br />
In addition, deciding the value of <strong>water</strong> at a particular<br />
time can be difficult as the potential <strong>water</strong> supply<br />
can fluctuate dramatically.<br />
<strong>Rio</strong> <strong>Tinto</strong> is working to underst<strong>and</strong> <strong>and</strong> include the<br />
social, environmental <strong>and</strong> economic aspects of <strong>water</strong><br />
in its decision making. In mid 2005, <strong>Rio</strong> <strong>Tinto</strong> gathered<br />
leading thinkers on <strong>water</strong> in Australia to debate how<br />
such issues could best be managed. As a result, <strong>Rio</strong> <strong>Tinto</strong><br />
<strong>and</strong> the Sustainable Minerals Institute at the University<br />
of Queensl<strong>and</strong> worked together on a project to increase<br />
<strong>and</strong> share underst<strong>and</strong>ing of the monetary <strong>and</strong> non<br />
monetary values of <strong>water</strong> <strong>and</strong> how to incorporate such<br />
values into decision making.<br />
Working with an advisory committee comprising<br />
representatives from industry, agriculture, conservation<br />
<strong>and</strong> <strong>Rio</strong> <strong>Tinto</strong> businesses, the 18 month project<br />
reviewed <strong>water</strong> valuation methodologies. The<br />
committee prepared a number of case studies focused<br />
on <strong>Rio</strong> <strong>Tinto</strong> <strong>water</strong> management <strong>and</strong> developed a<br />
risk based valuation methodology to assist decisions<br />
relating to <strong>water</strong>.<br />
Approaches to valuing <strong>water</strong><br />
A simple framework has been developed to help assess<br />
the level of threat or opportunity associated with<br />
a difficult-to-value <strong>water</strong> issue. An example could<br />
include a potentially impacted creek or spring that has<br />
an important community recreational value. Another<br />
could be the value derived for the environment if<br />
a <strong>water</strong> saving technology was used by a mine. By<br />
identifying risk <strong>and</strong> ways to mitigate it, we can estimate<br />
the cost of managing the risk. We are currently looking<br />
at incorporating these ideas in our existing risk<br />
assessment processes.<br />
Other approaches are also being developed by our<br />
operations. <strong>Rio</strong> <strong>Tinto</strong> Alcan’s Weipa operation in<br />
Northern Queensl<strong>and</strong>, Australia, has developed a <strong>water</strong><br />
sourcing hierarchy that values the sustainability of<br />
<strong>water</strong> taken from the deep Great Artesian Basin <strong>and</strong><br />
compares it to more easily recharged shallow sources<br />
in the region. Another <strong>Rio</strong> <strong>Tinto</strong> business has calculated<br />
the potential cost of lost production if the operation<br />
faces cuts in <strong>water</strong> allocations, while yet another<br />
has applied cost benefit analysis methodology — that<br />
incorporates the social, environmental <strong>and</strong> economic<br />
costs <strong>and</strong> benefits — to help determine which <strong>water</strong><br />
management options are the most sustainable in the<br />
long term.<br />
These projects are helping us to underst<strong>and</strong> the<br />
different values of <strong>water</strong> <strong>and</strong> how these values can be<br />
incorporated into decision making <strong>and</strong> management<br />
approaches. We will continue to work with others to<br />
further develop these approaches.<br />
19
The value of <strong>water</strong><br />
Valuing ecosystems services<br />
Global ecosystems are under severe stress. Ecosystem<br />
degradation is important to industry, as not only<br />
does industry impact the environment, it also relies<br />
on the services that ecosystems provide. For example,<br />
ecosystems such as well managed river basins <strong>and</strong><br />
forests help to control run off <strong>and</strong> salinity, as well<br />
as provide natural <strong>water</strong> purification processes <strong>and</strong><br />
increased <strong>water</strong> flows.<br />
Increasingly, competition for these diminishing<br />
resources is driving the emergence of green markets.<br />
Putting a dollar value on the services that ecosystems<br />
provide is not easy, with current economic models<br />
incapable of adequately reflecting the true value<br />
of natural capital in business decisions.<br />
<strong>Rio</strong> <strong>Tinto</strong> owns large areas of l<strong>and</strong> that act as a buffer<br />
around its operational activities. The Group is currently<br />
working with the IUCN (the International Union<br />
for the Conservation of Nature) to investigate the<br />
business case <strong>and</strong> methodologies around designing<br />
<strong>and</strong> implementing ecosystem service offsets <strong>and</strong><br />
investments in these non operational assets. This has<br />
the potential to generate value from the green markets,<br />
which are developing in a number of countries.<br />
Argyle Diamond’s Participation Agreement with Traditional Owners of the<br />
East Kimberley region of Western Australia acknowledges the cultural<br />
significance of the l<strong>and</strong>, including seasonal flowing creeks <strong>and</strong> Boab tress.<br />
David Thornley conducts <strong>water</strong> testing at Coal & Allied’s Mount Thorley<br />
Warkworth operations in the Hunter Valley, Australia. Photo by Mike Curtain.<br />
20
Argyle Diamonds – acknowledging <strong>and</strong> upholding<br />
Traditional Owners’ rights<br />
<strong>Rio</strong> <strong>Tinto</strong>’s Argyle<br />
Diamonds mining<br />
lease is in the<br />
traditional country of<br />
the Miriuwung, Gidja,<br />
Malgnin <strong>and</strong> Woolah<br />
Indigenous peoples,<br />
in the East Kimberley<br />
region of Western<br />
Australia.<br />
Within the lease area<br />
lie a number of extremely<br />
important traditional<br />
cultural sites, including<br />
Devil Devil Springs, which<br />
dried up in the past as a<br />
result of Argyle’s operations.<br />
In 2004, the area's<br />
Traditional Owners signed<br />
a Participation Agreement<br />
with Argyle that provides<br />
a formal <strong>and</strong> binding<br />
acknowledgement of<br />
Traditional Owners' rights<br />
<strong>and</strong> interests in the mining<br />
lease area.<br />
In essence, the agreement<br />
recognises Traditional<br />
Owners as the l<strong>and</strong>lords<br />
of the Argyle mining lease,<br />
while recognising Argyle's<br />
right to continue its current<br />
mining operations <strong>and</strong> to<br />
establish an underground<br />
mining operation in<br />
the future.<br />
Water management is<br />
of great importance to<br />
Traditional Owners as <strong>water</strong><br />
is a precious resource in<br />
the region. Traditional<br />
Owners are concerned about<br />
good stewardship of natural<br />
resources generally, but<br />
are concerned about <strong>water</strong><br />
because of the relationship<br />
between ground<strong>water</strong> <strong>and</strong><br />
significant ethnographic<br />
sites on the mining lease.<br />
During the agreement<br />
process — where the impact<br />
of the proposed additional<br />
underground mine on<br />
ground<strong>water</strong> was discussed<br />
— Traditional Owners<br />
engaged a hydrogeologist<br />
to independently review<br />
the de<strong>water</strong>ing <strong>and</strong><br />
ground<strong>water</strong> impact<br />
modelling.<br />
As a result of this<br />
independent review,<br />
Traditional Owners<br />
<strong>and</strong> Argyle agreed that<br />
additional <strong>water</strong> monitoring<br />
bores would be installed.<br />
These are fitted with<br />
telemetry devices that<br />
send data to a website,<br />
which Traditional Owners<br />
are able to monitor for<br />
any ground<strong>water</strong> impacts.<br />
An annual inspection of<br />
the operations is another<br />
outcome of the Participation<br />
Agreement, providing an<br />
opportunity for Traditional<br />
Owners to be regularly<br />
assured about both the<br />
efficiency of <strong>water</strong> use<br />
<strong>and</strong> <strong>water</strong> quality at site.<br />
A Traditional Owner<br />
Relationship Committee —<br />
comprising 26 Traditional<br />
Owner representatives <strong>and</strong><br />
four Argyle representatives<br />
— meets quarterly to jointly<br />
monitor the implementation<br />
of the Agreement, including<br />
a specific management<br />
plan put in place to manage<br />
Devil Devil Springs.<br />
Case studies<br />
The value of <strong>water</strong><br />
<strong>Rio</strong> <strong>Tinto</strong> Coal Australia – responding to drought conditions<br />
<strong>Rio</strong> <strong>Tinto</strong> Coal<br />
Australia’s (RTCA) Coal<br />
& Allied operations in<br />
the Hunter Valley, New<br />
South Wales, primarily<br />
use <strong>water</strong> for coal<br />
processing <strong>and</strong> dust<br />
suppression.<br />
Drought conditions <strong>and</strong><br />
resulting <strong>water</strong> shortages<br />
have been significant issues<br />
for the region, with <strong>water</strong><br />
shortages posing a potential<br />
risk to production. RTCA has<br />
responded by putting <strong>water</strong><br />
management programmes<br />
in place for its three Hunter<br />
Valley mines, designed to<br />
improve <strong>water</strong> efficiency<br />
<strong>and</strong> reduce fresh <strong>water</strong><br />
consumption.<br />
Operations use a<br />
combination of fresh, poor<br />
quality <strong>and</strong> recycled <strong>water</strong>.<br />
The aim is to minimise<br />
the use of fresh<strong>water</strong>, so<br />
that it is available for other<br />
uses, <strong>and</strong> to maximise the<br />
amount of poor quality<br />
<strong>water</strong> that is used. On site,<br />
<strong>water</strong> is being segregated<br />
into different qualities<br />
to enable greater <strong>water</strong><br />
recycling <strong>and</strong> to minimise<br />
any contamination of<br />
fresh<strong>water</strong>. Water that is<br />
captured in the mining<br />
pits is now being used in<br />
preference to fresh<strong>water</strong><br />
wherever practicable.<br />
Efforts to maximise use<br />
of poor quality <strong>water</strong> have<br />
been further improved<br />
by the construction of<br />
a large interconnecting<br />
pipeline between two<br />
of the operations.<br />
This allows the transfer<br />
of <strong>water</strong> between the<br />
operations to meet peak<br />
dem<strong>and</strong>s during extended<br />
periods of dry weather<br />
or drought.<br />
In response to the drought<br />
<strong>and</strong> in addition to recycling<br />
efforts, the runoff from<br />
undisturbed catchments<br />
on the mining leases is<br />
being diverted around the<br />
mining areas <strong>and</strong> back<br />
into natural <strong>water</strong>courses<br />
wherever practicable. Also,<br />
excess mine <strong>water</strong> that<br />
meets specific <strong>water</strong> quality<br />
criteria is being discharged<br />
back to the environment<br />
in accordance with<br />
environmental approvals.<br />
In 2008 Coal & Allied’s<br />
mining operations in the<br />
Hunter Valley dramatically<br />
reduced their consumption<br />
of fresh<strong>water</strong> from the<br />
Hunter River. The Hunter<br />
Valley Operation mine<br />
did not withdraw any<br />
<strong>water</strong> from the Hunter<br />
River <strong>and</strong> Mount Thorley<br />
Warkworth mine withdrew<br />
only 147 million litres from<br />
the local river which was<br />
significantly less than<br />
its planned amount of<br />
444 million litres. While<br />
this reduction in fresh<strong>water</strong><br />
consumption was assisted<br />
by higher rainfall than usual<br />
in the second half of 2007,<br />
the improvements in the<br />
<strong>water</strong> management system<br />
have also played a key<br />
part in achieving such a<br />
significant reduction.<br />
21
April Pigalak <strong>and</strong> Travis Liske from a local community associated with the Diavik diamond mine in Canada contribute their<br />
traditional knowledge in addressing fish palability as part of a <strong>water</strong> monitoring programme.<br />
Engaging with others<br />
For our <strong>water</strong> strategy to succeed, we need to have good<br />
working relationships with those directly or indirectly affected<br />
by our businesses.<br />
Indigenous <strong>and</strong> other l<strong>and</strong> owners, potentially affected<br />
communities, governments, regulators, international, regional<br />
<strong>and</strong> local non government organisations (NGOs), investors, the<br />
scientific <strong>and</strong> financial communities, as well as employees, all<br />
have interests <strong>and</strong> concerns to which <strong>Rio</strong> <strong>Tinto</strong> must respond.<br />
Engagement helps us underst<strong>and</strong> issues <strong>and</strong> priorities <strong>and</strong><br />
develop programmes <strong>and</strong> actions that deal with the things<br />
that matter to our stakeholders.<br />
22
Community <strong>water</strong> supply<br />
<strong>and</strong> sanitation<br />
Communities require an adequate supply of clean <strong>water</strong>.<br />
Increasingly, <strong>Rio</strong> <strong>Tinto</strong> is working in locations where<br />
access to clean drinking <strong>water</strong> <strong>and</strong> adequate sanitation<br />
is an issue for neighbouring communities, particularly<br />
in developing countries. Operations require a healthy<br />
workforce <strong>and</strong> a supportive community to work<br />
successfully in these environments.<br />
If <strong>Rio</strong> <strong>Tinto</strong>’s operations have fresh <strong>water</strong>, but<br />
neighbouring community supplies are insufficient or<br />
contaminated, then there is a risk for <strong>Rio</strong> <strong>Tinto</strong>. Our<br />
QMM mineral s<strong>and</strong>s operation in Madagascar is a good<br />
example of working with the World Bank <strong>and</strong> the local<br />
<strong>water</strong> authority to provide a clean <strong>water</strong> supply to<br />
communities (see page 26).<br />
We are currently developing guidelines around <strong>water</strong><br />
<strong>and</strong> communities for <strong>Rio</strong> <strong>Tinto</strong> projects <strong>and</strong> operations.<br />
The guidelines will help operations underst<strong>and</strong> the risks<br />
<strong>and</strong> opportunities in community <strong>water</strong> <strong>and</strong> sanitation<br />
initiatives <strong>and</strong> will be supported by case examples of<br />
good practice. This approach will help <strong>Rio</strong> <strong>Tinto</strong> support<br />
the United Nations Millennium Development Goals,<br />
which include halving the number of people without<br />
safe drinking <strong>water</strong> <strong>and</strong> adequate sanitation by 2015.<br />
Engagement with government<br />
<strong>and</strong> industry<br />
As <strong>water</strong> is not an issue for <strong>Rio</strong> <strong>Tinto</strong> alone, it<br />
is important to work with other businesses <strong>and</strong><br />
governments on <strong>water</strong> related policy issues. In Australia,<br />
<strong>Rio</strong> <strong>Tinto</strong> is supporting the National Water Initiative<br />
that is reforming the way <strong>water</strong> is managed<br />
by, among other things, developing <strong>water</strong> markets.<br />
<strong>Rio</strong> <strong>Tinto</strong> works with other mining companies <strong>and</strong><br />
the Australian Government to provide information<br />
<strong>and</strong> work on research opportunities for industry <strong>water</strong><br />
issues. Among the initiatives being undertaken<br />
is the development of industry wide <strong>water</strong> metrics.<br />
World Economic Forum<br />
<strong>water</strong> initiative<br />
The World Economic Forum (WEF) is undertaking<br />
a major <strong>water</strong> initiative that brings together a diverse<br />
group of stakeholders to address key areas. These areas<br />
include raising awareness of global <strong>water</strong> challenges<br />
<strong>and</strong> finding ways to leverage the competencies<br />
of international business to help meet those <strong>water</strong><br />
challenges. <strong>Rio</strong> <strong>Tinto</strong> has joined the project’s board<br />
<strong>and</strong> sees membership as an opportunity to learn from<br />
other leading companies <strong>and</strong> to participate in the <strong>water</strong><br />
debate. It is also an opportunity to share knowledge<br />
acquired over the past ten years.<br />
Working on internal collaboration<br />
<strong>Rio</strong> <strong>Tinto</strong> has developed a number of approaches to<br />
help its businesses <strong>and</strong> operations implement leading<br />
practice on <strong>water</strong> management. One of the key<br />
approaches has been the establishment of a central,<br />
specialised team with expertise in <strong>water</strong> management.<br />
The <strong>Rio</strong> <strong>Tinto</strong> <strong>water</strong> team is responsible for building<br />
business support programmes — tools, processes, case<br />
studies, reference materials <strong>and</strong> checklists — that can be<br />
used by operations <strong>and</strong> new projects to manage <strong>water</strong><br />
risks <strong>and</strong> opportunities.<br />
It also provides tailored advice <strong>and</strong> consulting<br />
services to new projects <strong>and</strong> existing operations <strong>and</strong><br />
has expertise in: business <strong>water</strong> strategies; <strong>water</strong><br />
management practices; tailings <strong>and</strong> waste management;<br />
mine de<strong>water</strong>ing; site remediation; ground<strong>water</strong><br />
exploration; hydrogeology; <strong>water</strong> balances; <strong>water</strong><br />
supply; <strong>and</strong> geotechnics. Other approaches taken to<br />
encourage collaboration have included regional <strong>water</strong><br />
meetings for operations <strong>and</strong> the development of<br />
a Group wide internal <strong>water</strong> forum.<br />
Engaging with others<br />
<strong>Rio</strong> <strong>Tinto</strong> has also led government-industry working<br />
groups to develop best practice guidance on <strong>water</strong>.<br />
One outcome is a <strong>water</strong> management framework<br />
for the Australian Ministerial Council on Mineral<br />
<strong>and</strong> Petroleum Resources <strong>and</strong> the Minerals Council<br />
of Australia, <strong>and</strong> a leading practice guide for <strong>water</strong><br />
management for the Australian mining industry,<br />
developed in partnership with the Australian<br />
Government.<br />
23
Engaging with others<br />
Case study<br />
The <strong>water</strong> treatment facility at Resolution Copper, Arizona, US, has been built to treat the extracted <strong>water</strong><br />
that has naturally accumulated in an old mine shaft.<br />
Resolution Copper – managing today’s excess <strong>water</strong><br />
to ensure future availability<br />
The Resolution Copper<br />
project is located near<br />
Superior, Arizona,<br />
US. The large world<br />
class copper resource<br />
lies more than 1.5<br />
kilometres below the<br />
surface, adjacent to<br />
but deeper than an old<br />
mine that was closed<br />
in the mid 1990s.<br />
To undertake further<br />
exploration <strong>and</strong> begin<br />
development of the planned<br />
new mine, almost nine<br />
billion litres of <strong>water</strong> that<br />
naturally accumulated in<br />
the old mine will need to<br />
be removed.<br />
A <strong>water</strong> treatment facility<br />
has been constructed<br />
to prepare the <strong>water</strong> for<br />
discharge once it is pumped<br />
to the surface — draining<br />
the old mine could take<br />
up to two years. But the<br />
bigger challenge has been<br />
determining where the<br />
removed ground <strong>water</strong><br />
should go once treated,<br />
to ensure the <strong>water</strong><br />
resources in an arid Arizona<br />
environment is fully utilised<br />
<strong>and</strong> the environment is not<br />
negatively impacted.<br />
Resolution Copper is<br />
working with the New<br />
Magma Irrigation <strong>and</strong><br />
Drainage District (NMIDD)<br />
to supply the extracted<br />
<strong>water</strong> for agricultural<br />
use in Arizona. The project<br />
involves the construction of<br />
a 44km pipeline to transport<br />
the <strong>water</strong> from Resolution’s<br />
treatment facility in<br />
Superior to Magma Junction.<br />
NMIDD will combine this<br />
<strong>water</strong> with Central Arizona<br />
Project (CAP) <strong>water</strong> to<br />
irrigate cotton, alfalfa <strong>and</strong><br />
Bermuda rye grass. CAP<br />
delivers renewable <strong>water</strong><br />
from the Colorado River<br />
by canal to central <strong>and</strong><br />
southern Arizona so surface<br />
<strong>water</strong> can be used instead<br />
of depleting ground<strong>water</strong><br />
for agricultural, municipal<br />
<strong>and</strong> industrial uses.<br />
Resolution is also working<br />
with NMIDD <strong>and</strong> the<br />
Hohokam Irrigation <strong>and</strong><br />
Drainage District to store<br />
<strong>water</strong> for processing the<br />
ore <strong>and</strong> cooling the mine<br />
in the future. Resolution<br />
is purchasing <strong>and</strong> ‘banking’<br />
excess CAP <strong>water</strong> with<br />
the irrigation districts for<br />
future use, minimising its<br />
impact on <strong>water</strong> supply.<br />
Purchasing <strong>and</strong> banking<br />
began in 2006 <strong>and</strong> will<br />
continue as long as CAP<br />
has excess <strong>water</strong> available.<br />
In the past, Resolution has<br />
purchased enough <strong>water</strong><br />
to meet approximately<br />
six years’ worth of mining<br />
production requirements.<br />
In 2009 Resolution will<br />
purchase nearly five years<br />
of production requirements.<br />
Because excess CAP <strong>water</strong><br />
will not always be available<br />
for purchase, Resolution<br />
Copper is also exploring<br />
additional long term sources<br />
of sustainable <strong>water</strong> to meet<br />
the needs of operations.<br />
24
Engaging with others<br />
Case study<br />
The Diavik diamond mine is surrounded by the <strong>water</strong>s of Lac de Gras in Canada’s Northwest Territories. Lac de Gras<br />
forms part of the head<strong>water</strong>s of the Coppermine River, which flows north to the Arctic coast.<br />
Diavik diamond mine – working with communities<br />
The Diavik diamond<br />
mine is located on a<br />
20 square kilometre<br />
isl<strong>and</strong> in Lac de Gras<br />
in the Northwest<br />
Territories of Canada.<br />
Operating since<br />
2003, Diavik presents<br />
enormous engineering<br />
<strong>and</strong> environmental<br />
challenges.<br />
To mine its kimberlite ore,<br />
located under the shallow<br />
<strong>water</strong>s of Lac de Gras,<br />
Diavik had to construct<br />
dikes to temporarily hold<br />
back the <strong>water</strong> <strong>and</strong> expose<br />
the lake bottom to allow<br />
open pit mining to proceed.<br />
The mine is located 300<br />
kilometres northeast of<br />
Yellowknife, in the subarctic<br />
zone of the Canadian<br />
tundra, where temperatures<br />
can often dip below<br />
minus 40.<br />
More than one third of<br />
the Northwest Territories<br />
is covered by lakes <strong>and</strong><br />
rivers <strong>and</strong> in spite of its<br />
apparent abundance, <strong>water</strong><br />
is considered a precious<br />
resource, especially by<br />
Aboriginal people.<br />
It provides habitat for much<br />
of the wildlife that is critical<br />
to the traditional lifestyles<br />
of local communities. The<br />
<strong>water</strong> in Lac de Gras is<br />
almost as pure as distilled<br />
<strong>water</strong>, but nevertheless<br />
supports several species of<br />
fish, among them lake trout,<br />
whitefish, arctic grayling,<br />
<strong>and</strong> cisco. During mining,<br />
Diavik is building fish<br />
habitat in areas between the<br />
dikes <strong>and</strong> the open pits. The<br />
dikes themselves form fish<br />
habitat <strong>and</strong> when the mine<br />
closes, there will be no net<br />
loss of fish habitat. To<br />
protect the lake, Diavik has<br />
a <strong>water</strong> collection <strong>and</strong><br />
treatment system.<br />
The heart of the system<br />
is the mine’s <strong>water</strong><br />
treatment plant which<br />
removes suspended<br />
solids. In preparation for<br />
underground mining that<br />
will follow depletion of<br />
the open pit, the plant’s<br />
capacity is being doubled.<br />
In 2007, the community<br />
based Wekeezhii L<strong>and</strong><br />
<strong>and</strong> Water Board,<br />
established under the<br />
Tlicho L<strong>and</strong> Claims <strong>and</strong><br />
Self-Government<br />
Agreement, renewed<br />
Diavik’s <strong>water</strong> licence. The<br />
renewed licence, covering<br />
eight years, was the first<br />
issued by the new board.<br />
The licence outlines<br />
regular <strong>water</strong> sampling,<br />
known as the surveillance<br />
network programme, <strong>and</strong><br />
other sampling, known<br />
as the aquatic effects<br />
monitoring programme,<br />
which is comprised of many<br />
sampling programmes. In<br />
all, over 2000 <strong>water</strong> samples<br />
are collected yearly. In<br />
addition to aquatic <strong>and</strong><br />
fisheries sampling, Diavik<br />
also monitors vegetation<br />
<strong>and</strong> studies various<br />
wildlife including caribou,<br />
<strong>water</strong>fowl, raptor, wolverine,<br />
<strong>and</strong> grizzly bear.<br />
Diavik has entered<br />
into an Environmental<br />
Agreement with local<br />
Aboriginal people <strong>and</strong><br />
the federal <strong>and</strong> territorial<br />
governments that formalises<br />
its environmental protection<br />
commitments <strong>and</strong> provides<br />
transparency <strong>and</strong> oversight<br />
to local communities.<br />
Under the agreement,<br />
an Environmental<br />
Monitoring Advisory<br />
Board has been established,<br />
with representatives<br />
from community,<br />
government, <strong>and</strong> Diavik,<br />
with the m<strong>and</strong>ate to make<br />
recommendations about<br />
the effectiveness of Diavik’s<br />
approach to environmental<br />
management, including<br />
<strong>water</strong> issues.<br />
The board was instrumental<br />
in helping Diavik undertake<br />
a fish palatability study<br />
to provide baseline<br />
information regarding the<br />
quality <strong>and</strong> health of fish<br />
in Lac de Gras. This study<br />
took place with Aboriginal<br />
elders <strong>and</strong> Diavik scientists,<br />
demonstrating how<br />
scientific <strong>and</strong> traditional<br />
knowledge can be<br />
integrated.<br />
The scientific results<br />
mirrored the baseline<br />
data collected by Diavik<br />
during its environmental<br />
assessment, conducted<br />
from 1995 through 1998,<br />
<strong>and</strong> indicated that there<br />
was no change in fish<br />
health. For this study,<br />
<strong>and</strong> for other studies<br />
including caribou <strong>and</strong> <strong>water</strong><br />
quality monitoring, Diavik<br />
constructed a seasonal<br />
camp on the lake’s shores<br />
just a short distance from<br />
the mine.<br />
25
Engaging with others<br />
Case study<br />
Jean Jacques, Birdlife Madagascar, leads a group of schoolchildren birdwatching in a conservation zone in Madagascar.<br />
QMM works with the community to support a number environmental initiatives. <strong>Rio</strong> <strong>Tinto</strong> has a global partnership with<br />
Birdlife International, focussing on biodiversity conservation.<br />
QMM – developing partnerships for mutual benefit<br />
Near the town of<br />
Fort Dauphin, in<br />
southern Madagascar,<br />
QMM Madagascar<br />
Minerals SA (QMM) is<br />
developing the initial<br />
phase of its mineral<br />
s<strong>and</strong>s mining project.<br />
Madagascar is a global<br />
biodiversity ‘hotspot’ with<br />
very high diversity <strong>and</strong><br />
a number of endemic <strong>and</strong><br />
threatened species <strong>and</strong><br />
habitats. The country<br />
is characterised by high<br />
poverty, high rural<br />
populations, subsistence<br />
agriculture, <strong>and</strong> low levels<br />
of industry — it is ranked<br />
as one of the world’s<br />
poorest countries.<br />
Water management in<br />
the region is a significant<br />
issue. Fort Dauphin has<br />
a population of around<br />
50,000 people, but <strong>water</strong><br />
infrastructure is in disrepair<br />
<strong>and</strong> around 90 per cent<br />
of the population does<br />
not have ready access to<br />
potable <strong>water</strong>. QMM’s<br />
<strong>water</strong> requirements <strong>and</strong><br />
the expected growth of the<br />
town due to the project<br />
development cannot be<br />
supported by the existing<br />
infrastructure.<br />
While the project is able<br />
to contribute funds <strong>and</strong><br />
engineering expertise, it is<br />
not a sustainable solution<br />
for the region for QMM to<br />
perform the role of a <strong>water</strong><br />
service provider to the town.<br />
QMM therefore initiated<br />
a consultative process<br />
resulting in a collaborative<br />
partnership with the World<br />
Bank <strong>and</strong> JIRAMA (the local<br />
service provider) to upgrade<br />
<strong>and</strong> extend the town supply<br />
<strong>and</strong> reticulation.<br />
Under the agreement the<br />
town supply line is being<br />
replaced, with a new<br />
treatment plant being<br />
constructed by QMM.<br />
The World Bank will assist<br />
with both financing <strong>and</strong><br />
engineering to upgrade<br />
the town’s reticulation <strong>and</strong><br />
distribution network, <strong>and</strong><br />
operation by JIRAMA has<br />
been formally agreed. QMM<br />
will also assist with the<br />
training <strong>and</strong> management<br />
of the treatment facilities.<br />
Other QMM initiatives for<br />
<strong>water</strong> management in the<br />
region include provision<br />
of <strong>water</strong> supply wells<br />
to communities beyond<br />
the supply scheme, <strong>and</strong><br />
a whole-of-catchment<br />
approach to conservation,<br />
biodiversity <strong>and</strong> <strong>water</strong><br />
resource management.<br />
26
The Iron Ore Company of Canada’s disused Lorraine Pit<br />
is now filled with <strong>water</strong>.<br />
Case study<br />
Engaging with others<br />
The Iron Ore Company of Canada is undertaking a project to restore<br />
Wabush Lake’s <strong>water</strong> colour <strong>and</strong> recover fish habitats.<br />
Iron Ore Company of Canada – changing tailings<br />
practices to minimise impact<br />
The Iron Ore Company<br />
of Canada (IOC)<br />
operates a mine in<br />
western Labrador,<br />
Canada, in an area<br />
of valuable native<br />
ecosystems, including<br />
an extensive system<br />
of lakes, wetl<strong>and</strong>s <strong>and</strong><br />
boreal forests.<br />
For more than 40 years,<br />
IOC discharged up to<br />
23 millions tonnes of finely<br />
ground rock tailings into<br />
Wabush Lake. Although in<br />
compliance with regulatory<br />
requirements at the time<br />
(the tailing is an inert <strong>and</strong><br />
non toxic mixture of rock<br />
<strong>and</strong> s<strong>and</strong>) the tailings<br />
was having a significant<br />
effect on the physical <strong>and</strong><br />
biological balance of<br />
the lake.<br />
Over the years, it had<br />
created a phenomenon<br />
the locals call “red <strong>water</strong>”,<br />
which although harmless,<br />
was seen as unsightly <strong>and</strong><br />
reduced the amount of light<br />
that reached lake flora<br />
<strong>and</strong> fauna.<br />
In response to internal <strong>and</strong><br />
community concerns, as<br />
well as regulatory changes,<br />
IOC considered a number<br />
of options to minimise<br />
the tailing impact on the<br />
lake <strong>and</strong> surrounding<br />
environment. After<br />
extensive consultation<br />
with community, federal<br />
<strong>and</strong> provincial governments,<br />
the decision was made to<br />
change the way tailing was<br />
discharged into the lake<br />
by using flocculation, which<br />
contains the tailings in a<br />
specific area of the lake <strong>and</strong><br />
gets rid of the red colour of<br />
the <strong>water</strong> — thus recovering<br />
lost fish habitat.<br />
By taking a creative<br />
approach with the<br />
rehabilitation of the tailing,<br />
new l<strong>and</strong> forms <strong>and</strong> a<br />
wetl<strong>and</strong> are being created<br />
across the disposal area <strong>and</strong><br />
are planted with a diverse<br />
variety of local vegetation.<br />
Low lying areas form a<br />
mosaic of wetl<strong>and</strong> basins,<br />
riparian zones <strong>and</strong> upl<strong>and</strong>s,<br />
providing a variety of<br />
habitats for native wildlife.<br />
A major engineering <strong>and</strong><br />
construction project has<br />
created a me<strong>and</strong>ering<br />
stream <strong>and</strong> associated<br />
grassl<strong>and</strong>s, enhancing fish<br />
<strong>and</strong> <strong>water</strong>fowl habitats.<br />
As the rehabilitation work<br />
continues, over the next<br />
40 years, thous<strong>and</strong>s of<br />
hectares of “new habitat”<br />
will be developed. IOC<br />
anticipates that the artificial<br />
wetl<strong>and</strong> will not only<br />
contribute to biodiversity<br />
conservation but also<br />
minimise operational costs<br />
<strong>and</strong> maximise the options<br />
for post-closure l<strong>and</strong> use.<br />
Early estimates of the costs<br />
of wetl<strong>and</strong>s indicate that<br />
the project will be either<br />
cost neutral or cheaper than<br />
traditional revegetation.<br />
The project has broken<br />
new ground in Canadian<br />
environmental stewardship<br />
by incorporating<br />
wetl<strong>and</strong>s, biodiversity<br />
<strong>and</strong> conservation on an<br />
operational mine site.<br />
In 2005, IOC received<br />
the Great Blue Heron<br />
national award from the<br />
North American Waterfowl<br />
Management Plan. This<br />
award acknowledges plan<br />
participants who have<br />
made significant, long term<br />
contributions that result<br />
in benefits to <strong>water</strong>fowl<br />
<strong>and</strong> other migratory<br />
bird populations of<br />
North America.<br />
27
Icel<strong>and</strong><br />
Norway<br />
Canada<br />
United Kingdom<br />
Mongolia<br />
United States<br />
France<br />
Oman<br />
India<br />
Guinea<br />
Ghana<br />
Cameroon<br />
Peru<br />
Indonesia<br />
Chile<br />
Namibia<br />
Zimbabwe<br />
South Africa<br />
Madagascar<br />
Australia<br />
New Zeal<strong>and</strong><br />
Major operations <strong>and</strong> projects<br />
Future challenges<br />
Since 2005, <strong>Rio</strong> <strong>Tinto</strong> has taken a strategic approach<br />
to the way we manage <strong>water</strong>. <strong>Rio</strong> <strong>Tinto</strong> has delivered<br />
a Group wide <strong>water</strong> framework that sets expectations<br />
for <strong>water</strong> management <strong>and</strong> encourages engagement<br />
with other <strong>water</strong> users. It has also developed tools <strong>and</strong><br />
guidance to support operations in improving <strong>water</strong><br />
management.<br />
While we have made progress over the past three years,<br />
we recognise the significant work ahead especially as<br />
the world continues to suffer <strong>water</strong> stress. Our focus for<br />
the next three years will be to:<br />
• Continue implementation of the <strong>water</strong> strategy to<br />
improve performance across operations.<br />
• Develop business level <strong>water</strong> strategies to manage<br />
local <strong>and</strong> regional <strong>water</strong> risks <strong>and</strong> opportunities.<br />
• Create opportunities to support community<br />
<strong>water</strong> supply.<br />
• Create value associated with ecosystem services.<br />
• Share experiences, learn from others, contribute<br />
to <strong>water</strong> discussion <strong>and</strong> debate at the local, national<br />
<strong>and</strong> international levels.<br />
28
For more information<br />
about <strong>Rio</strong> <strong>Tinto</strong> <strong>and</strong><br />
our environmental <strong>and</strong><br />
community programmes<br />
visit www.riotinto.com
<strong>Rio</strong> <strong>Tinto</strong> Limited<br />
120 Collins Street<br />
Melbourne<br />
Victoria 3000<br />
Australia<br />
T +61 (0) 3 9283 3333<br />
www.riotinto.com<br />
<strong>Rio</strong> <strong>Tinto</strong> plc<br />
2 Eastbourne Terrace<br />
London<br />
W2 6LG<br />
United Kingdom<br />
T +44 (0) 20 7781 2000<br />
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