Water

We value water as a resource at both the local and global level, and we understand that how we manage it has many social, environmental and economic impacts. In addition, we operate in many different climates, from arctic to tropical, where the amount of available water varies greatly.  So we are committed to managing water in a responsible way and improving our water performance.

Our water requirements - both in terms of water inputs and water outputs - compete with the needs of others and the environment, particularly in arid and semi-arid regions.  As a result, access to water resources for mining and processing activities is a key business risk that needs to be managed.

How we manage our water resources

We have a long term approach to water management that aims to improve our performance, recognise the true value of water and work with others to contribute to sustainable water management. Our Water Strategy, developed in 2005, provides a framework for all water activities in the company and its programmes include:

• A five year Group water target for a ten per cent reduction in freshwater withdrawal per tonne of product, between 2003 and 2008.
• Our Water Standard, launched in 2003, and aimed at maintaining or improving water quality and maximising water efficiency from exploration through to closure. Two key components include appropriate site water balance and a philosophy to managing water beyond the mine gate within our local water catchments. 
• A diagnostic tool that assesses performance and risk across all water management aspects within our operations, from initial exploration through to closure. This process provides operations with an action plan to improve performance.

Results

We achieved our Group target ahead of schedule in 2005 and by the end of 2006, had achieved 11.5 per cent per tonne of product. 

While positive, most of these gains were achieved though the significant production increases the company achieved over the last two years.  To a lesser extent, the results reflect efficiency actions as these plans are yet to contribute significantly to the target. 

Our challenge now is to sustain these gains through improved performance to 2008, and beyond.

At the end of 2006, 95 per cent of operations had implemented the series of environmental standards, including the water standard. Audits have identified some gaps, and most seem to relate to site water balances and a need to better measure water inputs and outputs.

Site water management plans are expected to improve over the next few years as data becomes more available and opportunities are explored further.

The water diagnostic was conducted at 28 sites between 2004-2006 to provide businesses with a baseline on water management and prioritise actions to improve performance.

Other than those mentioned above, the key areas identified for improvement included aging infrastructure at many of our operations; ensuring supply and discharge assurance; and developing a more strategic approach to managing water risks.

A number of commendations were made during the audits for operations that use real time water monitoring, have a good understanding of the ground water and surface water hydrology and quality, and have good water balances.

Improvements in performance that have been recognised as a result of this program include:

• Development of dynamic water balance models at Northparkes, Diavik, all Pilbara Iron operations, and updated models for Kennecott Utah Copper and Ranger. These models are being used to measure performance compared to predictions and supply/discharge criteria. 
• Appointment of water champions and/or water teams at many sites to focus water improvement activity and align with the business plan.  Northparkes, Kennecott Utah Copper, Pilbara Iron, Ranger and Diavik are examples of our operations where such managers or teams are improving water awareness within their businesses.