Water is of critical importance to mines and to surrounding communities

1. Leveraging extractive industry investments for domestic infrastructure needs:WaterMinimizing the mining sector’s water footprint and increasing access to [potable] water supply for communitiesJune 2014

2. Water is of critical importance to mines and to surrounding communities Banner in Knysna, South Africa. Source: www.cactuslouise.com Source: Ventyx Indigenous 'water laws' protest in Ecuador, 2010; photo by Lou Gold

3. What is meant by shared use? Minimize a mine’s footprint Leverage mining-related investments in water infrastructure Source: The Habitat Advocate Robinson Lake, Randfontein, SA Source: www.environment.co.za Source: waterpaths.wordpress.com

4. Water intensity of mining Source: Frost & Sullivan 2011

5. Mines need water infrastructure to source and treat water Source: Veolia

6. Economic premise for shared use • Potential benefit for mine: • Increased water supply • Reduced costs • Maintain social license to operate • Minimize reputational risk • Benefit for country: • Minimize the mining sector’s water footprint • Increase access to improved potable water • Develop the water infrastructure

7. Scope of Framework • Purpose: To facilitate shared-use

8. STEP 1: What determines a mine’s water arrangements? • How much fresh water has been allocated, or is available to a mining operation? Fresh water availability • Can mine obtain some or all of its water requirements from an existing Authority? Reliability? Adequacy of public water infrastructure Cost of water supply • At what cost? Cost of recycling water/sourcing from alternative locations • How much water can the mine obtain from recycling/ re-using water, or obtaining it from other sources?

9. STEP 2: Identify Operational Synergies

10. Scenario (a) Mines supply excess water to communities Excess water is supplied from: communities

11. Scenario (a) i. Mine provides treated water obtained from dewatering Source: Weir Minerals at www.dewateringexpertise.com Source: Aquatech Dewatering and Pumping Solutions

12. eMalahleni Water Reclamation Plant E-Mahlahleni Water Reclamation Plant, South Africa Source: Anglo American’s 6-step guide to turning mine water into homes, drinking water and jobs.

13. Scenario (a) ii. Mine provides excess desalinated water Source: Doosan Hydro Technology

14. Scenario (a) iii. Mine provides treated waste water Source: Freeport McMoRan Copper & Gold

15. Scenario (a): STEPS 3 & 4

16. Scenario (b) Mine as an anchor for investment in water infrastructure

17. Scenario (b): STEPS 3 & 4

18. Scenario (c) : Mines provide water infrastructure to nearby communities Where a mine sources its own water, it could also supply water to communities

19. Scenario (a)(i): Mine provides piped water supply, treatment and/or storage infrastructure Scenario (a)(ii): Mine provides small-scale supply and treatment solutions to surrounding communities Scenario (c) : Mines provide water infrastructure to nearby communities Source: www.africanvision.org.uk Source: Rio Tinto Source: Waterhealth International

20. Scenario (c) Negotiating Points • Required by terms of concession agreement, or part of a mining company’s CSR program? • What is the geographical scope for the infrastructure? • Which parties should be involved (government, utility, donors, NGOs)? • What are the responsibilities of each party? Who provides the services? • Water quality/ water availability/ O&M

21. Keep ICT sector in mind when discussing power project Service Arrangement Ownership model 1. Mine builds own infrastructure a) Telecom adds capacity. b) Mine adds telecommunication capacity and leases to Telecom. a) Companies building required infrastructure to mines (e.g. power, pipeline and railways) add telecommunication capacity at a lower cost. 2. Mine does not build own infrastructure b) Mine provides anchor demand for Telecom. c) Government, Telecom and mining companies coordinate efforts and investments.

22. Mines Build Infrastructure Win - Win • Example: Peru • MineraAntamina built fiber optic network along slurry pipeline which Telefonica del Peru uses to provide ICT services. • Mine maintains social license • a. Telecom adds capacity • Telecom expands coverage Source: Antamina • Example: Malaysia • Celcom and Petronas build fiber optic network along gas pipeline with spare capacity. • Mine maintains social license and adds revenue Source: Agilent • b. Mine adds telecommunication capacity and leases to Telecom • Example: Brazil • In 2001 Vale wanted to partner with railroad partners and install fiber optic along 10,000km of rail lines and lease to Telecoms. • Telecom expands coverage Source: Globo

23. Companies building required infrastructure to mines add telecommunication capacity at a lower cost • Objective: Leveraging economies of scope by sharing with other infrastructure industries (such as power utilities, water and sewage pipelines, railways) • Rationale: A large part of the costs is associated with costs of civil works. • Example: Canada • De Beers mine allowed power utility FNEI to use electricity grid infrastructure to build fiber optic cable. • FNEI with local municipalities then formed Western James Bay Telecommunications Network (WJBTN) to operate and provide telecommunications services. Source: Five Nations Energy • Example: Potential in Mozambique – Nacala Corridor: • Vale and Mozambique Ports and Railway (CFM) selected Siemens to install microwave-based telecommunications network for track-to-train data transmission. Source: InternationalRailway Journal

24. CCSI’s Framework for Shared – Use: http://ccsi.columbia.edu/work/projects/leveraging-infrastructure-investments-for-development/

25. Agree on the 5 key points that your colleagues which were not part of this breakout session should know about mining-related water infrastructure