Water
Access to water is critical to Rio Tinto's operations. We use water at every stage of our business - for exploration, mining, processing, smelting, refining, rehabilitation and drinking. We also use significant quantities of water to generate hydroelectric power.
Each of our operations has its own set of water challenges. Some are located in water-scarce environments where they compete with other users, while other operations need to manage surplus water from storms or groundwater. The quality of water is also a consideration, as it can affect production or increase operating costs. As a result, each of our operations implements our water strategy in its own way.
- Approach
- Risks
- Impacts
- Engagement
- Results
Although concern about water availability is global in nature, water impacts are experienced at the local and regional levels. Therefore, measuring and reporting water performance is more meaningful at the local level.
The potential impacts of climate change will bring greater levels of uncertainty and risk to our water supplies. Water related impacts arise from changes in the quantity or quality of a water resource, which may then pose risks to production, licence to operate, access to water, reputation, costs, and/or regulatory changes. We need to understand how our operations and nearby communities will be impacted.
Water scarcity
We have used the World Business Council for Sustainable Development global water tool to identify which of our operations and projects are located in water scarce environments. Approximately eight per cent of our freshwater withdrawal is from 20 operations in water scarce environments around the world. The map below shows that our greatest exposure relates to many of our Australian operations. See our performance data for a breakdown of our water withdrawal by country and product group.
Operational water risks
Over the past five years, Rio Tinto has experienced some production loss as a result of water-related impacts. The potential impacts of climate change will bring higher levels of uncertainty and risk to our water supplies.
We need to understand how our operations and nearby communities will be impacted. For example, over the next ten to 20 years we will likely see the following impacts at some of our operations:
- Increased water scarcity leading to operational disruptions eg lack of water for processing ore or generating hydroelectric power.
- Flooding leading to operational disruptions and damage to infrastructure.
- Increased dewatering requiring increased energy use and greenhouse gas emissions.
- Reputational risk related to stakeholders with competing water claims.
Water regulation will also evolve to reflect changes in water availability which could impact our operations, including:
- Higher water prices;
- Changes to water allocation disrupting operations and constraining future growth;
- Regulation of discharge quality and volumes leading to higher compliance costs; and
- Increased difficulty in obtaining plant site permits.
There are also potential risks associated with the supply of water intensive inputs for our operations. For example, the generation of electricity requires water for cooling purposes or for the generation of hydroelectric power.
Rio Tinto is working to ensure continued access to adequate water supply by taking a longer term approach to water management which includes:
- Setting water efficiency and recycling targets to reduce our water use.
- Setting targets to manage our impact on the ecology surrounding our operations.
- Understanding the flow regime and quality required to maintain ecosystem integrity.
- Including water availability consideration in our design of new projects.
- Relocating and upgrading infrastructure to allow for greater flood protection.
- Obtaining access to alternate water sources to protect against water shortages.
- Working with stakeholders on sustainable water management issues, especially with communities near our operations.
See our response to the Carbon Disclosure Project's water report for more information on our water management programmes.
