Water and energy

Modern societies are utterly reliant on water and energy, and these two life essentials are interlinked.

Energy production depends heavily on water; and approximately eight per cent of power generated worldwide is used for pumping, treating and transporting water.

Yet there is a profound difference between the two: with energy, mankind has alternatives, with water we do not.

While fossil fuels will continue to dominate power generation for the foreseeable future, other energy sources do exist. Yet with water, although it covers more than 70 per cent of the Earth’s surface, much less than one per cent of it is fit and available for human consumption. Fresh water is essential for human survival, and access to it is a fundamental human right. The preservation of resources must therefore be a high priority for governments, business and individuals – and indeed this is one of the Millennium Development Goals.

The overwhelming use of water globally – around three quarters of that meagre one per cent – is not for drinking or industry, rather, it goes to watering fields to grow food. If we limit water for agriculture we reduce food security. Restricting water for domestic users is also almost inconceivable. However, if we cut water for industry we can stifle economic growth.

So what are we to do?

The answer is, to do what we can in a systematic and planned manner with set goals and measurable outcomes.

Mining needs large amounts of water. Anglo American alone consumed 201M m3 in 2013, and this is already mitigated by recycling and reusing around 70 per cent of the water we needed. However, most of our operations are located in water-stressed areas making this even more important. Indeed, in South Africa water is predicted to deteriorate from the ‘stressed’ to the ‘scarcity’ category by 2025. This can pose a substantial threat to resources, communities and business.

Anglo American is acutely aware of this risk and has introduced industry-leading water and energy management programmes to minimise the environmental impact of what we do.

In 2010 we established a 10-year Group Water Strategy with requirements being for us to have site water action plans and targets to deliver a 14 per cent reduction in water usage by 2020. We are already at a 15 per cent reduction and now expect to achieve more than 20 per cent of savings by 2020. Our proactive approach to water management – using technology, innovation and partnerships – has so far allowed us to save 35M m3 of water and $85m in cost – a big chunk of which is associated with saving the energy cost of moving water around.

A large company, such as Anglo American, with a clear objective and commitment can make a big difference to its stakeholders and their livelihoods. But we can have a far greater impact by working in partnership with governments, other business, NGOs and local communities.

In Chile, for example, we have built a US$100m desalination plant to use seawater for our activities rather than competing for groundwater that is also used for agriculture. This provides water security for our operations and for farmers where we operate.

Anglo American is investing in projects intended to enable us to run water-neutral mines by 2030. This is a major commitment. Providing infrastructure that delivers water and energy is hugely expensive, needs maintenance and long-term commitment from all participants. Companies can take a lead, but cannot do it alone.

The alternative is not worth contemplating, that without water and energy, companies – like communities – can wither and die.