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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 />

Designed by Streamer design & communication.<br />

Printed on Revive Laser uncoated paper.<br />

This paper is Australian made <strong>and</strong> 100% recycled.<br />

Printed by Bluestar Print<br />

© <strong>Rio</strong> <strong>Tinto</strong> plc <strong>and</strong> <strong>Rio</strong> <strong>Tinto</strong> Limited<br />

A

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