Global water resources are being placed under increasing pressure, driven by factors like climate change and population growth, and mines risk having ‘stranded assets’ that cannot be developed without water, despite concerted corporate action and technological improvements.

Therefore, global environmental, health, safety, risk and social consulting services provider Environmental Resources Management (ERM) principal consultant Clemence McNulty says mining companies, governments and civil society are recognising the need to work together to create solutions that solve the challenges regarding water supply and access to water. “Water is becoming a critical constraint to mine and socioeconomic development,” she avers.

ERM facilitated a roundtable discussion with mining executives on water stewardship on the morning of February 6, at the One&Only Hotel, coinciding with their presence at the Investing in African Mining Indaba, held in Cape Town.

The discussion was anchored to the International Council on Mining and Metals’ (ICMM’s) Position Statement on Water Stewardship, published in January, which requires that all 23 ICMM member companies implement commitments by November 2018 and not retrospectively.

The commitment is premised on the concept of water stewardship, which refers to the “use of water in ways that are socially equitable, environmentally sustainable and economically beneficial” – based on the definition provided by environmental organisation Alliance for Water Stewardship.

One of the requirements that companies are expected to meet is the application of strong and transparent corporate governance regarding water – involving clear responsibility for water, reporting on water metrics, integrating water stewardship in business decisions and publicly disclosing the company’s approach to water stewardship.

Further, companies are expected to manage water at operations effectively through, for example, compiling a water balance, considering the cumulative impact on water at catchment level, and setting context relevant targets while ensuring access to sanitation or wash facilities for all employees.

Companies are expected to collaborate to achieve responsible and sustainable water use by, for example, endeavouring to identify and respond to catchment-level water risks and opportunities, and engaging in collective action.

“The roundtable event brought together senior leadership from a range of mining companies and other stakeholders, such as the Centre for Environmental Rights and the Alliance for Water Stewardship, as well as water technology providers,” ERM business unit managing partner Marinda van der Merwe says.

McNulty outlines that the attendees discussed a range of questions that were designed to lead to the identification of the specific actions that would be required to meet the commitments in the ICMM’s position statement, the challenges involved in achieving these targets and the risks that would result if targets went unmet.

“The discussion made it clear that, while the ICMM commitments look simple, they require a paradigm shift in the way that mining companies manage water.”

This shift involves moving from a site-centric approach to water management, which is usually aligned with licence conditions (to which the remit of staff at mines also corresponds) to a much broader view of catchment-level-available water sources, competing uses and opportunities to ensure that all stakeholders have a fair share of water.

“Innovation in mine water management was highlighted by participants noting the introduction of waterless mines, support for improved reporting and control over water resources, as well as the importance of accounting for the true costs of water.

“We see that companies are beginning to recognise the need for different models of working, collaborating and thinking.”

McNulty adds.

ERM terms this part of the movement the ‘uberisation of mining’, explaining that it involves companies embracing disruptive concepts over historic or normal business methods. ERM global managing partner for the mining sector Louise Pearce adds that this has been particularly true in the mining sector’s management of health, safety, environment and community risks.

It was also noted at the roundtable that transparency in water management is crucial if trust with communities, upon which social licence to operate depends, is to be established. This would require comprehensive identification of and greater engagement with stakeholders, making information about performance available in an accessible, nontechnical manner for a range of practitioners, while participatory water and environmental monitoring programmes – which include community participation – could also help improve the trust deficit between mining companies and communities surrounding their operations.

“The roundtable highlighted that mining companies, just like a lot of private-sector players, must carefully consider their water strategies going forward, as pressure will continue to build on this shared resource, exacerbated by climate change and other trends – such as urbanisation and population growth,” McNulty adds.

In conjunction with hosting the roundtable event alongside the Indaba, an ERM delegation of senior partners from the company’s South African offices, as well as Canada and the UK, attended the Mining Indaba at the Cape Town International Convention Centre, where the mood was “much more upbeat” than that of last year.

Van der Merwe and Pearce noted that many of ERM’s key clients were in Cape Town: “As always, the event was great for networking and we have gained more insights into some of the areas where ERM will be able to help our clients meet their business objectives.”

It is important for mining companies, investors, governments, service providers and other relevant mining stakeholders, such as those at the “Alternative Mining Indaba”, to collaborate and talk about the opportunities and challenges facing the sector, McNulty states.

“There is an opportunity, particularly in Africa, for the sector to come together to deliver a much better outcome for all stakeholders.”